Under what circumstances does the Guarantee for a Bft franchise terminate?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guarantee shall terminate upon the expiration or termination of the Franchise Agreement, except that this Guarantee shall continue in full force and effect with respect to all obligations and liabilities of Franchisee and Guarantor that arise from events that occurred on or before the effective date of such expiration or termination or that are triggered by or survive expiration or termination of the Franchise Agreement This Guarantee is binding upon each Guarantor and its respective estate, executors, administrators, heirs, beneficiaries, and successors in interest.
The validity of this Guarantee and the obligations of Guarantor(s) hereunder shall in no way be terminated, restricted, diminished, affected or impaired by reason of any action that Franchisor might take or be forced to take against Franchisee, or by reason of any waiver or failure to enforce any of the rights or remedies reserved to Franchisor in the Franchise Agreement or otherwise.
The use of the singular herein shall include the plural. Each term used in this Guarantee, unless otherwise defined herein, shall have the same meaning as when used in the Franchise Agreement.
The provisions contained in Article 16 of the Franchise Agreement (Resolution of Disputes), including, without limitation, Section 16.1 (Governing Law), Section 16.3 (Mediation), Section 16.4 (Mandatory Binding Arbitration), Section 16.6 (Consent to Jurisdiction), and Section 16.11 (Attorneys' Fees and Costs), are incorporated into this Guarantee by reference and shall govern this Guarantee and any disputes between the Guarantors and Franchisor. The Guarantors shall reimburse Franchisor for all costs and expenses it incurs in connection with enforcing the terms of this Guarantee.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Guarantee associated with the franchise agreement terminates upon the expiration or termination of the Franchise Agreement. However, this termination does not release the Guarantor from obligations and liabilities that arose before the expiration or termination date or that are triggered by or survive the expiration or termination of the Franchise Agreement. This ensures that any pending or ongoing responsibilities are still upheld even after the agreement ends.
Furthermore, the Guarantee remains binding on the Guarantor and their estate, including executors, administrators, heirs, beneficiaries, and successors. This means the obligations under the Guarantee can extend beyond the original Guarantor to their legal successors. The validity and obligations of the Guarantor are not affected by any actions Bft might take or be forced to take against the Franchisee, or by any waiver or failure to enforce rights or remedies by Bft.
In essence, the Guarantee is designed to provide Bft with continuous protection, ensuring that financial and legal responsibilities are met regardless of changes in the Franchisee's circumstances or actions taken by Bft. The Guarantee's terms are also governed by the dispute resolution provisions outlined in the Franchise Agreement, including governing law, mediation, mandatory binding arbitration, consent to jurisdiction, and attorneys' fees and costs. The Guarantors are responsible for reimbursing Bft for all costs and expenses incurred while enforcing the Guarantee.