What is the 'Effective Date' in the context of the Bor Restoration Guaranty?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 | 91 | ||
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| Initials | Initials |
GUARANTY OF FRANCHISEE'S OBLIGATIONS
| This Guaranty of Franchisee's Obligations (Guaranty) is entered into as of the date that it is signed by all Parties (Effective Date) of this Guaranty, between BOR Franchising, LLC (Franchisor), (Franchisee) and , and (jointly and severally known as "Guarantor(s)"). Franchisor, Franchisee, and Guarantors may be referred to as a "Party" or as the "Parties." Any capitalized term not defined here will have the meaning given to it in the Franchise Agreement. |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the Effective Date of the Guaranty is defined as the date when all parties involved have signed the Guaranty. This includes BOR Franchising, LLC (the Franchisor), the Franchisee, and the Guarantor(s). The Guaranty is entered into as of this date.
This means that the legal obligations and responsibilities outlined in the Guaranty become active and enforceable from the moment all required signatures are affixed. The Guaranty ensures that the Guarantor(s) will cover the Franchisee's financial and performance obligations under the Franchise Agreement for its entire term.
For a prospective Bor Restoration franchisee, understanding the Effective Date is crucial because it marks the commencement of the Guarantor's commitment. The guarantor is bound by the terms and conditions from this date forward. This date is important because it legally binds the guarantor to the franchisee's obligations.