Does the Guaranty in the All County Franchise Agreement extend beyond the initial term of the agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4. such liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which we may from time to time grant to Franchisee or to any other person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the Term of the Agreement and thereafter.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Guaranty associated with the Franchise Agreement extends beyond the initial term of the agreement. The guarantor's liability is not contingent on All County pursuing remedies against the franchisee or any other person. Furthermore, the guarantor's liability will not be affected by any extensions of time, credit, or other allowances that All County may grant to the franchisee. This includes accepting partial payments or compromising claims.
The Guaranty remains continuing and irrevocable during the term of the agreement and thereafter. This means that the obligations of the guarantor persist even after the initial franchise term concludes. The Guaranty is binding on each guarantor, their successors, and assigns, and it benefits All County, its successors, and assigns. The guarantor cannot assign their obligations without All County's prior written consent.
This extended liability ensures that All County has recourse for financial obligations and liabilities even after the franchise term has ended, providing a layer of security for the franchisor. Prospective franchisees should carefully consider the implications of this extended Guaranty and ensure that any guarantors are fully aware of their long-term obligations. Franchisees should seek legal counsel to fully understand the scope and duration of the Guaranty.