Who is responsible for paying the costs incurred by Care Plus Medical Ucc related to the Guaranty?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor shall pay to Care Plus Medical UCC all costs incurred by Care Plus
Medical UCC (including reasonable attorney fees) in enforcing this Guaranty. If multiple Guarantors sign this Guaranty, each will have joint and several liability.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the Guarantor is responsible for covering all costs incurred by Care Plus Medical UCC when enforcing the Guaranty. This includes reasonable attorney fees. If there are multiple Guarantors, each of them will be jointly and severally liable, meaning Care Plus Medical Ucc can seek the full amount from any one or all of them.
In essence, if Care Plus Medical Ucc has to take legal action to enforce the Guaranty, the Guarantor (or Guarantors) must pay all associated costs, including legal fees. This provision ensures that Care Plus Medical Ucc can recover expenses incurred while enforcing the Guaranty agreement.
This is a standard clause in franchise agreements to protect the franchisor's interests. Prospective franchisees should carefully review the Guaranty and understand their obligations, as well as the potential financial implications of failing to meet those obligations. Franchisees should also consider the implications of joint and several liability if there are multiple guarantors involved.