What is the definition of 'Guarantor' in the context of the Bor Restoration General Release?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| This General Release (Release) is made on the date that all Parties sign it (Effective Date) between BOR Franchising, LLC, a Colorado limited liability company authorized to do business in Colorado (Franchisor), (Franchisee), and (Guarantor). Franchisor, Franchisee, and Guarantor may sometimes be referred to as a "Party" or jointly as the "Parties." All capitalized terms not defined in this Release will have the meaning stated in the Franchise Agreement. |
|---|
| RECITALS |
| Franchisor and Franchisee entered into that certain franchise agreement dated |
| (Franchise Agreement), and Guarantor guaranteed the performance of the Franchisee under the Franchise |
| Agreement. Franchisee desires |
| to take some action (or make some amendment) to the Franchise Agreement |
| or desires for the Franchisor to take any action for which a General Release is called for in the Franchise |
| Agreement |
| or is required by Franchisor as part of such action, |
| and |
| as a material inducement to the |
| Franchisor approving the same, Franchisee and Guarantor have each agreed to provide this Release. |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the General Release involves three parties: the Franchisor (BOR Franchising, LLC), the Franchisee, and the Guarantor. The document specifies that the Guarantor has guaranteed the performance of the Franchisee under the Franchise Agreement. This indicates that the Guarantor is an individual or entity that has agreed to be responsible for the Franchisee's obligations and liabilities as outlined in the Franchise Agreement.
The General Release is required when the Franchisee seeks to take some action or amendment to the Franchise Agreement, or when Bor Restoration needs to take action that necessitates a general release. As a material inducement for Bor Restoration's approval, both the Franchisee and the Guarantor must provide this release. This suggests that the Guarantor's agreement to the release is crucial for Bor Restoration to proceed with the requested action or amendment.
The Guarantor, along with the Franchisee, releases and discharges Bor Restoration from all claims related to the Franchise Disclosure Document (FDD), the franchise relationship, and the Franchise Agreement. This includes known and unknown claims, as well as those related to the delivery, content, or lack of content of the FDD. The Guarantor also agrees to indemnify Bor Restoration against any losses or damages arising from these claims. This comprehensive release underscores the significant responsibility and potential liability assumed by the Guarantor in the franchise agreement.