If a Dryject guarantor dies, is their estate still bound by the Guaranty Agreement?

According to Dryject's 2025 Franchise Disclosure Document, the estate of a deceased guarantor is bound by the Guaranty Agreement. However, this obligation is limited to defaults and obligations under the Franchise Agreement that existed at the time of the guarantor's death. The obligations of any other guarantors remain in full force and effect.

This means that if a Dryject franchisee has a guarantor for their financial obligations, and that guarantor passes away, the guarantor's estate will be responsible for any outstanding debts or unfulfilled obligations that the franchisee had at the time of the guarantor's death. The estate will not be responsible for any new debts or obligations incurred after the guarantor's death. This provision protects Dryject by ensuring that existing financial commitments are honored even after the guarantor's death, while also providing some limitation of liability for the guarantor's estate.

For a prospective Dryject franchisee, this clause highlights the importance of understanding the full scope of the Guaranty Agreement and its potential impact on their estate. It also underscores the need to carefully consider who serves as a guarantor, as their estate could be held responsible for the franchisee's obligations. Franchisees should discuss this provision with their legal and financial advisors to fully understand the implications.