What is the Guarantor's obligation to Bor Restoration regarding the Franchise 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 |
| © 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 Guarantor's obligations are detailed in the Guaranty of Franchisee's Obligations. As an inducement for Bor Restoration to grant franchise rights, the Guarantor agrees to fully guarantee the franchisee's payment and performance under the Franchise Agreement. This means the Guarantor assures that the franchisee will timely pay all required amounts and fulfill every agreement and covenant outlined in the Franchise Agreement, including any amendments or addenda.
The Guarantor also agrees to be personally bound by every term of the Franchise Agreement, as amended or renewed, and is personally liable for any breach of the agreement. This guarantee is one of payment and performance, not merely of collection, meaning Bor Restoration can pursue the Guarantor directly without first having to exhaust all remedies against the franchisee. Furthermore, the Guarantor is subject to all restrictive covenants in the Franchise Agreement, including those related to obligations and restrictions.
The Guarantor waives certain rights, including the right to require Bor Restoration to first bring action against the franchisee before seeking recourse from the Guarantor. This waiver includes acceptance or notice of acceptance, notice of demand for payment or nonperformance, and protest and notice of default. This comprehensive guarantee ensures that Bor Restoration has additional security for the franchisee's obligations, mitigating the risk of non-payment or non-performance. The Guarantor's obligations extend for the entire term of the Franchise Agreement.