In the Bor Restoration franchise agreement, what parties are involved in the agreement?
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.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to the 2024 Bor Restoration Franchise Disclosure Document, the parties involved in the franchise agreement include BOR Franchising, LLC as the Franchisor, the Franchisee, and the Guarantor. These parties may be referred to individually as a "Party" or collectively as the "Parties."
The Guarantor's role is to guarantee the franchisee's obligations under the franchise agreement. This means the Guarantor assures that the franchisee will make timely payments and fulfill all responsibilities outlined in the agreement. The Guarantor is also personally bound by every term of the Franchise Agreement, including restrictive covenants.
This arrangement ensures that Bor Restoration has recourse not only to the franchisee but also to the guarantor, providing an additional layer of security for the franchisor. Prospective franchisees should understand the implications of involving a guarantor, as it places significant responsibility on that individual. The guarantor must be fully aware of the obligations they are undertaking and the potential financial and legal ramifications.