Does the death of a Guarantor affect the Atwell Suites Guaranty, and if so, how?

According to Atwell Suites' 2025 Franchise Disclosure Document, the death of a guarantor does have an impact on the guaranty. Specifically, the estate of the deceased guarantor will be bound by the guaranty, but only for defaults and obligations that existed at the time of death. This means that the guarantor's estate is responsible for any outstanding debts or unfulfilled obligations of the licensee that were present when the guarantor passed away.

However, the obligations of any other guarantors will continue in full force and effect. This means that if there are multiple guarantors for the Atwell Suites license agreement, the remaining guarantors will still be responsible for the licensee's obligations, even after the death of one of the guarantors. Their responsibilities are not diminished or altered by the death of a co-guarantor.

This clause protects Atwell Suites by ensuring that the obligations under the license agreement are still met even if a guarantor dies. It also provides clarity to the guarantor's estate, limiting their liability to the obligations existing at the time of death. For a prospective franchisee, it's important to understand the implications of the guaranty and the potential liabilities that their estate could face.