A corporate guarantee is a lease guarantee backed by the parent company rather than a franchisee or subsidiary, and is generally the stronger credit.
A corporate guarantee means the parent company, which often has the financial statements and credit rating behind it, promises the lease payments. That is usually seen as stronger than a franchisee or a local subsidiary with little capital behind it. The guarantee does not automatically come with the brand name on the building, so buyers should confirm exactly which legal entity signed the lease and what it guarantees, including whether the guarantee covers the full term and any renewal periods.