For what period does the Guarantor's guarantee to All County extend?
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.
- 3.5. This Guaranty shall be binding on each Guarantor and his respective successors and assigns, and shall inure to our benefit and the benefit our successors and assigns. The Guarantor may not assign his obligations hereunder without our prior written consent.
The obligations of Franchisee and Guarantor, as described herein and in the Agreement, shall not be considered fully paid, performed and discharged unless and until all payments by Franchisee to us are no longer subject to any right on the part of any person to set aside such payments or to seek to recoup the amount of such payments. The foregoing shall include, by way of example and not by way of limitation, all rights to recover preferences voidable under Title 11 of the United States Code. If any such payments by Franchisee to us are set aside in whole or in part after being made, or are settled without litigation, to the extent of such settlement, all of which is in our business judgment, the Guarantor shall be liable, jointly and severally for the full amount of our costs, interest, attorney's fees and any and all expenses which we pay or incur in connection therewith.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Guarantor's liability is continuing and irrevocable during the term of the Franchise Agreement and even after the agreement concludes. This means that the Guarantor's obligations persist throughout the entire duration of the agreement and beyond its termination.
Specifically, 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, performance, or compromising or releasing claims. None of these actions will modify or amend the Guaranty.
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. The obligations of the franchisee and Guarantor are not considered fully paid until all payments by the franchisee are no longer subject to any right to be set aside or recouped. This includes rights to recover preferences voidable under Title 11 of the United States Code. If any payments are set aside or settled without litigation, the Guarantor remains liable for All County's costs, interest, attorney's fees, and expenses incurred.