Does the guarantor have to consent to the assignment of the All Team Guaranty to Centennial Bank?

According to All Team's 2025 Franchise Disclosure Document, the guarantor specifically consents to the assignment of the Guaranty to Centennial Bank. The document states that the guarantor acknowledges that the guaranty may be assigned by All Team Franchise Corporation (ATFC) to Centennial Bank as collateral for ATFC's obligations to Centennial Bank, and the guarantor specifically consents to this assignment.

This means that if a franchisee obtains funding from All Team and a guarantor is required, that guarantor is agreeing in advance that All Team can assign the guaranty to Centennial Bank as collateral for All Team's own financial obligations to the bank. This provides Centennial Bank with additional security, as they have recourse to the guarantor should All Team default on its obligations to the bank.

For a prospective All Team franchisee, this clause highlights the importance of fully understanding the implications of any personal guarantee. The guarantor should be aware that their obligations could extend beyond All Team and directly to Centennial Bank. It is advisable for the guarantor to seek independent legal and financial advice before signing the Funding Agreement Guarantee to fully understand the risks and obligations involved.