Under the All Team guarantee, what happens to the guarantor's obligations if they die?
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.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the obligations of a guarantor continue even after their death. Specifically, the guarantee remains in effect until All Team receives written notice of revocation. Until that written notice is received, the guarantor's estate is responsible for the obligations.
This means that if a guarantor dies, their estate will be legally bound to cover the debts and obligations outlined in the Funding Agreement. The estate's responsibility continues until All Team is formally notified in writing that the guarantee is being revoked. This places a significant responsibility on the guarantor's heirs or estate administrators to understand the terms of the guarantee and take appropriate action to limit their liability.
This provision protects All Team by ensuring that the guarantee remains valid even if the guarantor dies, unless and until All Team receives written notice of revocation. It is crucial for potential guarantors to understand that their obligations will not automatically end upon their death and that their estate will be responsible until the guarantee is formally revoked with written notice to All Team.