Can the Guaranty of Franchisee's Obligations for Bor Restoration be assigned to successors?

According to Bor Restoration's 2024 Franchise Disclosure Document, the Guaranty of Franchisee's Obligations can be assigned to successors. Specifically, the document states that the guarantor(s) guarantee to Bor Restoration and its successors and assigns, for the term of the Franchise Agreement, that the 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.

This means that if Bor Restoration is acquired or merges with another entity, the obligations of the guarantor(s) under the Guaranty will continue to apply to the new entity. This provides Bor Restoration with added security, as it ensures that the obligations of the franchisee will be guaranteed even if the ownership of the franchise changes.

For a prospective Bor Restoration franchisee, this clause means that if they require a guarantor for their franchise agreement (often a parent, spouse, or business partner), that guarantor's obligations will extend not only to Bor Restoration but also to any successor or assignee of Bor Restoration. The guarantor cannot claim that their obligations are voided if Bor Restoration is sold or transferred. This is a fairly standard practice in franchising, as it protects the franchisor's interests in the event of a transfer of ownership.