What happens to the Bumper Man Guaranty in the event of the guarantor's death?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Principal further acknowledges and agrees as follows:
- (a) it has read the terms and conditions of the Agreement and acknowledges that the execution of this Guaranty is in partial consideration for, and a condition to Franchisor's execution of the Agreement, and Franchisor would not have granted such rights without the execution of this Guaranty by each of the undersigned
- (b) this Guaranty will remain in force notwithstanding the death of the undersigned, and will be binding on the undersigned's personal representatives; and
- (c) this Guaranty will continue and will be enforceable notwithstanding any change in the name or the constitution of Franchisor or Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Guaranty and Undertaking of Obligations signed by the Principal remains in force even after the death of the Principal. This means that the obligations outlined in the guaranty will be binding on the personal representatives of the deceased Principal.
This provision ensures that Bumper Man's interests are protected even if a Principal dies. The estate of the deceased Principal remains responsible for fulfilling the obligations under the Guaranty, providing a continued layer of security for Bumper Man. This is a fairly standard practice in franchising, as it protects the franchisor from potential losses due to the franchisee's inability to meet their financial or contractual obligations, even after death.
For a prospective Bumper Man franchisee, this means that their estate will be responsible for any outstanding obligations under the Guaranty. It is important for potential franchisees to understand the full scope of the Guaranty and to discuss it with their legal and financial advisors. Franchisees should also ensure that their estate planning takes into account these obligations to avoid potential complications or financial burdens for their heirs.