When does the Guarantee for an Engineering For Kids franchise terminate?

According to the 2025 Engineering For Kids FDD, the Personal Guaranty terminates upon the termination or expiration of the Franchise Agreement. However, the guarantors remain liable for any obligations arising from events that occurred on or before the termination date until those obligations are satisfied or discharged. In the event of a guarantor's death, their estate remains bound by the guarantee, but only for defaults and obligations existing at the time of death. The obligations of the other guarantors will continue to be in full effect.

This means that even after the franchise agreement ends, the personal guarantors are still responsible for any outstanding debts or liabilities that arose during the term of the agreement. This could include unpaid royalties, outstanding vendor bills, or any other financial obligations that the Engineering For Kids franchisee failed to meet. The death of a guarantor does not eliminate the guarantee, but it does limit the estate's liability to defaults existing at the time of death.

This provision is fairly standard in franchising, as franchisors typically require a personal guarantee to ensure that they have recourse in the event of a franchisee default. The duration of the guarantee extending beyond the termination of the agreement is also common, as it protects the franchisor from liabilities that may not surface until after the franchise has closed. Prospective Engineering For Kids franchisees should carefully consider the implications of the personal guarantee and ensure they understand the full extent of their obligations before signing the Franchise Agreement.