Does the Dickeys Barbecue Pit Personal Guaranty survive the termination or expiration of the Franchise Agreement?

According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, the Personal Guaranty signed by the Owner/Operator and Investors survives the termination or expiration of the Franchise Agreement. This means that even after the franchise agreement ends, the personal guarantors remain responsible for the obligations outlined in the guaranty.

Specifically, the personal guaranty ensures the payment of all amounts and the performance of all terms and conditions of the Franchise Agreement by the franchisee. This obligation extends beyond the life of the agreement itself. This is a common practice in franchising, as it provides the franchisor with continued financial security even after the franchise relationship has ended.

For a prospective Dickeys Barbecue Pit franchisee, this means that the personal guaranty is a long-term commitment. The individuals signing the guaranty (Owner/Operator and Investors) should understand that their financial responsibility continues even after the franchise agreement terminates or expires. It is important to carefully consider the implications of this extended liability before entering into the franchise agreement and signing the personal guaranty.