Does the Bor Restoration Guaranty extend to amendments or renewals of the Franchise Agreement?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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, |
- d. Guarantor(s) liability shall not be diminished, relieved, or otherwise affected by an extension of time, credit, or another indulgence, including the acceptance of any partial payment or performance, or the compromise or release of any claims which Franchisor may from time to time grant to Franchisee or any other Person, none of which shall in any way modify or amend this Guaranty, which shall be continuing and irrevocable during the Term of the Franchise Agreement, including renewals thereof;
- e. this Guaranty will be continuing and irrevocable during the Term of the Franchise Agreement, including renewals thereof; and,
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the Guaranty of Franchisee's Obligations extends to both amendments and renewals of the Franchise Agreement. The Guarantor(s) guarantee the franchisee's obligations for the term of the Franchise Agreement, ensuring timely payment of amounts required and the performance of all undertakings, agreements, and covenants under the Franchise Agreement, including any addenda or exhibits attached to it, as each may be amended or renewed.
Furthermore, the Guarantor(s) agree to be personally bound by every term of the Franchise Agreement, as amended or renewed, and are personally liable for any breach of the terms, covenants, or conditions of the Franchise Agreement. This Guaranty is one of payment and performance, not just collection, meaning the franchisor can seek direct payment and performance from the guarantor without first pursuing the franchisee.
The Guarantor(s) also agree to be subject to all restrictive covenants in the Franchise Agreement, including those in Articles 6, 14, 15, and 16. Additionally, the Guarantor(s) waive certain rights, such as the right to require the franchisor to proceed first against the franchisee or any other person, and consent to direct and immediate liability under the Guaranty, which remains continuing and irrevocable during the term of the Franchise Agreement, including renewals. This ensures that Bor Restoration has a consistent and reliable guarantee throughout the entire duration of the franchise relationship, even if the agreement is modified or extended.