factual

Is the Bor Restoration franchisee employee always referred to as a 'Party' in the singular?

Bor_Restoration Franchise · 2024 FDD

Answer 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.
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
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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 'Party' refers to BOR Franchising, LLC (Franchisor), the Franchisee, and the Guarantor. These entities may be individually referred to as a 'Party' or collectively as the 'Parties.'

This definition appears in both the Guaranty of Franchisee's Obligations and the General Release documents. It clarifies that 'Party' is a singular term used to denote any of the involved entities (Franchisor, Franchisee, or Guarantor) in the context of these agreements. The plural term 'Parties' refers to all of them collectively.

For a prospective Bor Restoration franchisee, this means that any document referencing 'Party' could be referring to them, the franchisor, or the guarantor, depending on the context. It is important to understand which entity is being referenced to fully grasp the obligations and rights outlined in the specific clause or section of the agreement. This distinction is crucial for understanding legal responsibilities and entitlements within the franchise relationship.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.