For a Bor Restoration franchise, what is the consideration for the Guarantor's agreement?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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. |
|---|
| 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 |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to the 2024 Bor Restoration Franchise Disclosure Document, the consideration for the Guarantor's agreement includes mutual covenants outlined in the agreement and other valuable considerations deemed adequate by all parties involved. As an inducement for Bor Restoration to grant franchise rights, the Guarantor(s) agree to fully guarantee the franchisee's payment and performance under the Franchise Agreement.
Specifically, the Guarantor(s) guarantee that the franchisee will timely pay all required amounts and fulfill every obligation, agreement, and covenant as stated in the Franchise Agreement, including any amendments or renewals, for the term of the agreement. The Guarantor(s) also agree to be personally bound by every term of the Franchise Agreement, as amended or renewed, and to be personally liable for any breaches of the agreement.
Furthermore, as part of the inducement to Bor Restoration, the Guarantor(s) agree to waive certain rights, including acceptance or notice of acceptance, notice of demand for payment or nonperformance, protest and notice of default, and any right to require that action be first brought against the franchisee before holding the guarantor liable. The Guarantor(s) also agree to be subject to all restrictive covenants in the Franchise Agreement, including covenants related to Articles 6, 14, 15, and 16.