Does the Guaranty and Assumption of Obligations in the All Team Franchise Agreement extend to restrictive covenants and nondisclosure provisions?
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
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Guaranty and Assumption of Obligations extends to the restrictive covenants and nondisclosure provisions contained within the Franchise Agreement. This means that if a franchisee has a guarantor for their obligations under the agreement, that guarantor is also personally bound by the restrictive covenants and nondisclosure provisions.
Specifically, the guarantor guarantees that the franchisee will perform every agreement and covenant in the Franchise Agreement. This includes, but isn't limited to, the restrictive covenants and nondisclosure provisions. The guarantor is liable for any breaches of these provisions to the same extent and for the same period as the franchisee.
This obligation survives any expiration or termination of the Franchise Agreement or the Guaranty and Assumption of Obligations. This ensures that even after the franchise relationship ends, the guarantor remains responsible for the franchisee's adherence to the restrictive covenants and nondisclosure provisions, protecting All Team's interests even after the franchise term.