When does the Beem Light Sauna guarantee terminate for each Guarantor?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guarantee will be effective regardless of the insolvency of Franchisee by operation of law, any reorganization, merger, or consolidation of Franchisee, or any change in the ownership of Franchisee.
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- Term. This Guarantee will be irrevocable, absolute, and unconditional and will remain in full force and effect as to each of the Guarantors until the later of the date when (i) all Guaranteed Liabilities of Franchisee to Franchisor and its Affiliates have been paid and satisfied in full or (ii) the Development Agreement and all obligations of Franchisee under such agreement expire.
The death of any Guarantor shall not terminate the liability of such Guarantor or limit the liability of the other Guarantors under this Guarantee.
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- Successors and Assigns. This Guarantee shall be enforceable by and against the respective administrators, executors, heirs, successors, and assigns of the Guarantors.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the Payment and Performance Guarantee remains in effect for each guarantor until the later of two conditions. First, the guarantee remains until all Guaranteed Liabilities of the Franchisee to Beem Light Sauna and its affiliates have been fully paid and satisfied. Second, the guarantee remains until the Development Agreement and all obligations of the franchisee under that agreement expire.
This means that even if the franchisee has fulfilled all monetary obligations, the guarantee remains active until all other obligations under the Development Agreement are also fulfilled. Similarly, even if the Development Agreement has expired, any outstanding financial liabilities will keep the guarantee in effect.
Furthermore, the death of any guarantor does not terminate their liability, nor does it limit the liability of the other guarantors. This guarantee is also enforceable by and against the respective administrators, executors, heirs, successors, and assigns of the guarantors, ensuring that the obligations continue even in the event of a guarantor's death or transfer of assets.