What happens to the Crepe De Licious Area Development Agreement Guarantee, Indemnification, and Acknowledgment upon the death of an individual guarantor?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the death of an individual guarantor does not automatically terminate the Area Development Agreement Guarantee, Indemnification, and Acknowledgment. Instead, the guarantor's estate becomes responsible for any defaults and obligations that existed at the time of death. This means that the estate will be liable for any outstanding debts or unfulfilled responsibilities that the guarantor had before passing away.

However, the obligations of any other guarantors listed in the agreement will remain in full force and effect. This means that if there are multiple guarantors, the remaining guarantors will continue to be responsible for the obligations outlined in the agreement, regardless of the death of one of the guarantors. This provision ensures that Crepe De Licious has a continued guarantee for the Area Development Agreement, even if one of the individual guarantors passes away.

For a prospective Crepe De Licious franchisee, this clause highlights the importance of understanding the full scope of the guarantee and indemnification agreement. If multiple individuals are acting as guarantors, each should be aware that the responsibility continues for the others even after death, with the deceased's estate remaining liable for existing obligations. Franchisees should seek legal counsel to fully understand the implications of this clause and how it may affect their personal and business finances.