For All Team, how does a guarantor revoke their guarantee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
As to each guarantor, this guarantee shall continue in effect until ATFC has received written notice of revocation, notwithstanding the death of such guarantor (whose estate shall be bound until receipt of such notice), the release of any other guarantor, or the dissolution, liquidation, termination of business, bankruptcy, acquisition, merger, reorganization, or any other change in the nature or form of the business of USER, until all of USER's obligations and indebtedness under said Agreement shall have been fully performed and paid. No revocation or termination hereof shall affect rights or obligations under this guarantee with respect to obligations or indebtedness arising or contracted for prior to ATFC's receipt of written notice thereof, and any revocation or termination shall exclude from this guarantee only liabilities arising after such receipt that are unconnected with liabilities theretofore arising and transactions theretofore entered into.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a guarantor can revoke their guarantee by providing All Team Franchise Corporation (ATFC) with written notice of revocation. This written notice is crucial for the revocation to take effect. The guarantee remains in effect until ATFC receives this written notice, even in the event of the guarantor's death, where the guarantor's estate remains bound until the notice is received.
However, the revocation is not retroactive. It does not affect any obligations or indebtedness that arose or were contracted for before ATFC received the written notice. The revocation only applies to liabilities that arise after the receipt of the notice and are not connected to prior liabilities or transactions. This means that the guarantor remains responsible for any existing debts or obligations of the user (the franchisee) at the time of the revocation notice.
This condition is important for prospective All Team franchisees because it clarifies the extent and limitations of a guarantor's liability. If a franchisee requires a guarantor for their funding agreement, the guarantor needs to be aware that they cannot simply withdraw their guarantee to avoid existing financial responsibilities. The written notice provides a clear point from which future liabilities are excluded, but past obligations remain in place. This ensures that All Team is protected against losses from debts incurred before the revocation notice is received.