For what term does the Guarantor guarantee the Franchisee's obligations to Bor Restoration?

According to Bor Restoration's 2024 Franchise Disclosure Document, the Guarantor guarantees the Franchisee's obligations to Bor Restoration for the Term of the Franchise Agreement. This means that the guarantor is responsible for ensuring the franchisee complies with all the terms, conditions, and payments outlined in the franchise agreement for the entire duration of the agreement, including any renewals.

This guarantee extends to the timely payment of any amounts required by the Franchise Agreement and the performance of every undertaking, agreement, and covenant within it, including any addenda or exhibits. 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 breaches. This is a guarantee of both payment and performance, not just collection, meaning Bor Restoration can pursue the guarantor directly if the franchisee fails to meet their obligations.

Furthermore, the guarantor is subject to all restrictive covenants in the Franchise Agreement, including those related to Articles 6, 14, 15, and 16. The guarantor also waives certain rights, such as the right to require Bor Restoration to proceed first against the franchisee or any other person, and waives the right to any legal or equitable defenses.

This arrangement provides Bor Restoration with a significant level of security, as it ensures that there is another party responsible for the franchisee's obligations. For a prospective franchisee, it means that someone with sufficient assets and a close relationship with the franchisee (often a family member or business partner) must also be willing to take on the responsibility of ensuring the franchise agreement is upheld. This is a common practice in franchising to mitigate the risk for the franchisor.