Is the Bor Restoration franchisee employee always referred to as 'Parties' in the plural?
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 |
| © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 |
| 92 |
| Initials |
| Initials |
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 used to refer to multiple entities involved in agreements, but it does not specifically refer to franchisee employees. Instead, 'Parties' generally encompasses the Franchisor (BOR Franchising, LLC), the Franchisee, and any Guarantors. The document clarifies that these entities may be referred to individually as a 'Party' or collectively as the 'Parties,' indicating that the term is not exclusively plural. Franchisee employees are not mentioned in the context of this definition.
In the context of the Guaranty of Franchisee's Obligations, the 'Parties' involved are the Franchisor, Franchisee, and Guarantor(s). Similarly, in the General Release, the 'Parties' are the Franchisor, Franchisee, and Guarantor. This distinction is important for a prospective franchisee to understand, as it clarifies who is bound by the terms of these agreements. The use of 'Party' or 'Parties' depends on whether the reference is to a single entity or multiple entities within these agreements.
For a prospective Bor Restoration franchisee, this means that the term 'Parties' in legal documents will typically refer to the franchisor, the franchisee, and any guarantors, but not to the franchisee's employees. If a franchisee wants to understand the obligations and rights of their employees, they should look for specific clauses or agreements that address employment-related matters, which are separate from the franchise agreement and related documents defining 'Parties.'