What is the purpose of the 'Date' fields for the Guarantors in the Bor Restoration FDD?
Bor_Restoration Franchise · 2024 FDDAnswer 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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| Initials | Initials |
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 |
| © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 |
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| Initials |
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- e.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the 'Date' fields associated with the Guarantors serve to establish the effective date of legal documents such as the Guaranty of Franchisee's Obligations and the General Release. These dates are crucial for determining when the agreements become binding and enforceable.
Specifically, the effective date marks the commencement of the Guarantor's obligations and liabilities under the Guaranty. This includes the Guarantor's commitment to ensure the franchisee's timely payments and overall performance as stipulated in the Franchise Agreement. Similarly, the date on the General Release signifies when the Guarantor agrees to release Bor Restoration from certain liabilities, often in consideration of amendments or actions taken related to the Franchise Agreement.
For a prospective Bor Restoration franchisee, understanding these dates is essential because they define the period during which the Guarantor is responsible for the franchisee's obligations. It also clarifies when the Guarantor's waivers and releases become effective, which can have significant legal and financial implications. Therefore, it is important for both the franchisee and the guarantor to carefully review and understand the terms associated with these dates before signing any agreements.