Does the Guaranty of Franchisee's Agreement for Big O Tires include the restrictive covenants, confidentiality provisions, audit provisions, and indemnification provisions contained in the Franchise Agreement?

According to the 2025 Big O Tires Franchise Disclosure Document, the Guaranty of Franchisee's Agreement explicitly states that the undersigned (guarantor) shall be bound by the restrictive covenants, confidentiality provisions, audit provisions, and the indemnification provisions contained in the Franchise Agreement. This means that if you are a guarantor for a Big O Tires franchisee, you are also agreeing to be held responsible for these specific obligations outlined in the Franchise Agreement.

This has significant implications for anyone considering acting as a guarantor. It's not just about guaranteeing financial performance; it extends to adherence to non-compete clauses, maintaining confidentiality, complying with audit requirements, and covering potential indemnification claims. The guarantor's responsibilities are directly tied to the franchisee's obligations in these areas.

Big O Tires requires that the guarantor agrees to pay all expenses paid or incurred by Big O in attempting to enforce the obligations and this Guaranty against Franchisee and against the undersigned and in attempting to collect any amounts due thereunder and hereunder, including reasonable attorneys' fees if such enforcement or collection is by or through an attorney-at-law. This underscores the importance of thoroughly understanding the Franchise Agreement and the potential liabilities before signing the Guaranty of Franchisee's Agreement.

In essence, the guarantor is stepping into the shoes of the franchisee with respect to these critical aspects of the franchise operation. This is a common practice in franchising, as franchisors seek to ensure that all parties involved are committed to upholding the brand's standards and protecting its interests. Prospective guarantors should seek legal counsel to fully understand the scope of their obligations and potential risks before signing the Guaranty.