What debts and obligations of the Franchisee are personally and unconditionally guaranteed by the Guarantors to All Team Franchise Corporation and its Affiliates?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE IS NOT A FRANCHISEE OF ATFC AND MAY NOT RELY UPON BECOMING A FRANCHISEE OF ATFC.**
IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth below their names.
ALL TEAM FRANCHISE CORPORATION Brian Hindman, Chief Executive Officer , Address of FRANCHISEE:# GUARANTY AND ASSUMPTION OF OBLIGATIONS
In consideration of, and as an inducement to, the execution of the above Franchise Agreement (the "Agreement"), by ALL TEAM FRANCHISE CORPORATION ("ATFC") in favor of _______________________ ("FRANCHISEE"), each of the undersigned ("GUARANTORS") hereby personally and unconditionally guarantees to ATFC, its Affiliates (as hereinafter defined), and their successors and assigns for the term of the Agreement and thereafter as provided in the Agreement, that FRANCHISEE shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement and agrees to be personally bound by, and personally liable for the breach of each and every provision in the Agreement, including but not limited to, the restrictive covenants and nondisclosure provisions contained in the Agreement, as well as the provisions in the Agreement relating to the Marks and Transfers to the same extent as and for the same period of time as FRANCHISEE is required to comply with and abide by such covenants and provisions. All of the foregoing obligations of the undersigned shall survive any expiration or termination of the Franchise Agreement or this Guaranty and Assumption of Obligations. The GUARANTORS further hereby personally and unconditionally guarantee all debts and obligations FRANCHISEE incurs to ATFC, its successors, assigns, affiliated entities, parent corporation, and subsidiaries ("Affiliates"), as the case may be, as a result of any obligations under the Agreement and as a result of purchases of products or services from ATFC and its Affiliates. Each of the undersigned waives:
- (1) acceptance and notice of acceptance by ATFC or Affiliates of the foregoing undertakings;
- (2) notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed;
- (3) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed;
- (4) any right he or she may have to require that an action be brought against FRANCHISEE or any other person as a condition of liability;
- (5) all rights to payments and claims for reimbursement or subrogation which any of the GUARANTORS may have against the FRANCHISEE arising as a result of the GUARANTORS' execution of and performance under this guaranty; and
- (6) any and all other notices and legal or equitable defenses to which he or she may be entitled.
Each of the undersigned consents and agrees that:
- (1) his or her direct and immediate liability under this guaranty shall be joint and several;
- (2) he or she shall render any payment or performance required under the Agreement upon demand if the FRANCHISEE fails or refuses punctually to do so;
- (3) such liability shall not be contingent upon or conditioned upon pursuit by ATFC or Affiliates of any remedies against the FRANCHISEE or any other person; and
- (4) such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or the indulgence which ATFC or Affiliates may from time to time grant to the 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 shall in any way modify or amend this guaranty, which shall be continuing and irrevocable during the term of the Agreement.
If ATFC or any of the Affiliates are required to enforce this Guaranty and Assumption of Obligations in any judicial proceeding or appeal thereof, the GUARANTORS shall reimburse ATFC and Affiliates for its costs and expenses, including, but not limited to, reasonable accountants', attorneys', attorney assistants', and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any written demand, claim, action, hearing or proceeding to enforce this Guaranty.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Guarantors personally and unconditionally guarantee to All Team Franchise Corporation (ATFC) and its Affiliates that the Franchisee will punctually pay and perform every undertaking, agreement, and covenant outlined in the Franchise Agreement. This guarantee extends for the entire term of the agreement and beyond, as specified in the agreement. The Guarantors also agree to be personally bound by and liable for any breaches of the agreement, including restrictive covenants, nondisclosure provisions, and terms related to the Marks and Transfers, mirroring the Franchisee's obligations. These obligations survive any expiration or termination of the Franchise Agreement or the Guaranty and Assumption of Obligations.
Furthermore, the Guarantors personally and unconditionally guarantee all debts and obligations the Franchisee incurs to ATFC and its Affiliates due to obligations under the Agreement and purchases of products or services from them. The Guarantors waive several rights, including acceptance and notice of acceptance by ATFC or Affiliates, notice of demand for payment, protest and notice of default, the right to require action against the Franchisee, rights to payments and claims for reimbursement or subrogation, and any other legal or equitable defenses.
The Guarantors consent and agree to joint and several liability, meaning each Guarantor is fully liable. They must render payment or performance upon demand if the Franchisee fails to do so, and this liability is not contingent upon ATFC pursuing remedies against the Franchisee. The liability remains unaffected by any extensions of time, credit, or indulgence granted to the Franchisee, including partial payments or compromises. If ATFC or its Affiliates must enforce the Guaranty in any legal proceeding, the Guarantors will reimburse ATFC for all costs and expenses, including reasonable accountants', attorneys', and expert witness fees, costs of investigation, court costs, and other litigation expenses.
For a prospective All Team franchisee, this means that if you are required to have a guarantor, that guarantor is taking on significant personal financial risk. They are not only guaranteeing your adherence to the franchise agreement but also your ability to pay all debts to All Team. This could include not just franchise fees but also the cost of products and services purchased from All Team. The guarantor should be fully aware of the potential financial exposure and have complete faith in the franchisee's ability to manage the business successfully.