What happens to the Baymont Inn Suites Guaranty upon the death of an individual guarantor?

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the death of an individual guarantor does not automatically terminate the Guaranty. Instead, the guarantor's estate becomes responsible for the obligations of the franchisee to Baymont Inn Suites that existed at the time of death. This means the deceased guarantor's assets could be used to cover any outstanding debts or unfulfilled responsibilities of the franchisee.

Furthermore, the FDD states that the obligations of any other guarantors remain in full force and effect. So, if there are multiple guarantors for a Baymont Inn Suites franchise, the death of one guarantor does not release the others from their obligations. They continue to be fully responsible for the franchisee's performance under the franchise agreement.

This provision protects Baymont Inn Suites by ensuring that the financial obligations tied to the franchise agreement are still met even after the death of a guarantor. For potential franchisees, it's crucial to understand the implications of the Guaranty and to discuss with legal and financial advisors how it affects their estate planning and the responsibilities of any co-guarantors.