Under the Brueggers Bagels Development Agreement Guaranty, what is the role of the 'Estate'?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, the estate of a guarantor is bound by the Development Agreement Guaranty upon the guarantor's death, but only for obligations that existed at the time of death. This means that if a guarantor passes away, their estate will be responsible for any outstanding financial or contractual obligations that the guarantor had already incurred under the Development Agreement.

This provision protects Brueggers Bagels by ensuring that the obligations of the Development Agreement do not simply disappear upon the death of a guarantor. The estate must satisfy any existing debts or liabilities. However, the estate is not responsible for any new obligations that arise after the guarantor's death. The obligations of any surviving guarantors will remain in full effect.

For a prospective Brueggers Bagels franchisee, this clause highlights the importance of understanding the full scope of the financial and legal obligations associated with the Development Agreement Guaranty. It also underscores the need for careful estate planning to ensure that the estate can meet these obligations if the guarantor dies during the term of the agreement. Franchisees should consult with legal and financial advisors to fully understand the implications of this clause.