Does the Bor Restoration franchise agreement explicitly define the term 'Parties'?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
e Franchise Disclosure Supplemental Agreements are amended accordingly.
| © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 | 90 | ||
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EXHIBIT 8 GUARANTY
| © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 | 91 | ||
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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. |
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| RECITALS |
| Franchisee signed a franchise agreement with Franchisor on the day of, 20 |
| (Franchise Agreement). |
| As an inducement to the Franchisor for granting the |
| franchise rights, the |
| Guarantor(s) agreed to fully guaranty the payment and performance of Franchisee under the Franchise |
| Agreement; |
| NOW, THEREFORE, for and in consideration of the mutual covenants found herein and for other |
| good and valuable consideration, which consideration is deemed to be adequate by all Parties, each of the |
| undersigned personally and unconditionally agrees |
| to the following: |
| COVENANTS |
| 1. |
| Guarantor(s) guarantee to Franchisor and its successors and assigns, for the Term of the |
| Franchise Agreement, that Franchisee will |
| timely pay any amount required by the Franchise Agreement |
| and will perform every undertaking, agreement, and covenant under the Franchise Agreement and any |
| addenda or Exhibits attached to it |
| as each may be amended or renewed. |
| 2. |
| Guarantor(s) also agrees to be personally bound by every term of the Franchise |
| Agreement, as amended or renewed, |
| and agrees to be personally liable for the breach of and cure of every |
| breach of any term, covenant, or condition of the Franchise Agreement. |
| Guarantor(s) agree that this |
| Guaranty is one of payment and performance and not one of just collection. |
| 3. |
| By signing this Guaranty, each Guarantor further agrees that each shall also be subject to |
| all restrictive covenants in the Franchise Agreement, including |
| all covenants of Articles |
| 6, 14, 15, |
| and 16. |
| 4. |
| As part of the inducement given to Franchisor by Guarantor(s), |
| the Guarantor(s) further |
| agree to waive the following, |
| a. |
| acceptance or notice of acceptance; |
| b. |
| notice of demand for payment of any indebtedness or notice of any |
| nonperformance of any obligations; |
| c. |
| protest and notice of default concerning |
| the indebtedness or nonperformance of |
| any obligations guaranteed; |
| d. |
| any right Guarantor may have to require that any action be first brought against |
| Franchisee or any other Person |
| as a condition of liability; and |
| © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 |
| 92 |
| Initials |
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- e. all other notices and legal or equitable defenses to which Guarantor may be entitled.
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- Guarantor(s) further consent and agrees that:
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- a. Guarantor(s) is directly and immediately liable under this Guaranty, and if signed by more than one Person, such liability is joint and several;
- b. Guarantor(s) shall render any payment or performance required under the Franchise Agreement upon demand of Franchisor if Franchisee fails or refuses punctually to do so;
- c. Guarantor(s) performance shall not be contingent or conditioned upon the pursuit of any remedies against Franchisee or any other Person;
- d. Guarantor(s) liability shall not be diminished, relieved, or otherwise affected by an extension of time, credit, or another indulgence, including the acceptance of any partial payment or performance, or the compromise or release of any claims which Franchisor may from time to time grant to Franchisee or any other Person, none of which shall in any way modify or amend this Guaranty, which shall be continuing and irrevocable during the Term of the Franchise Agreement, including renewals thereof;
- e. this Guaranty will be continuing and irrevocable during the Term of the Franchise Agreement, including renewals thereof; and,
- f. Franchisor's rights under this Guaranty will not be exhausted by any action of Franchisor until all of the terms, covenants, and conditions of the Franchise Agreement have been met.
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Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the term 'Parties' is explicitly defined within both the Guaranty of Franchisee's Obligations and the General Release. In the Guaranty, 'Parties' refers to BOR Franchising, LLC (Franchisor), the Franchisee, and the Guarantor(s). Similarly, the General Release defines 'Parties' as BOR Franchising, LLC (Franchisor), the Franchisee, and the Guarantor.
This definition is important because it clarifies who is bound by the terms and conditions outlined in these documents. For a prospective Bor Restoration franchisee, understanding who the 'Parties' are is crucial for recognizing their rights, responsibilities, and obligations under the franchise agreement and related documents.
Furthermore, both the Guaranty and the General Release state that any capitalized terms not defined within these documents will have the meaning given to them in the Franchise Agreement. This indicates that the Franchise Agreement serves as the primary source of definitions for terms used in these related documents, ensuring consistency and clarity in the contractual relationship between Bor Restoration and its franchisees.