Does the Caring Senior Service Guaranty specify any limits on the amount of indebtedness that can be guaranteed?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantors hereunder are independent of the obligations of Borrower, and a separate action or actions may be brought and prosecuted against Guarantors whether action is brought against Borrower or whether Borrower be joined in any such actions or actions; and Guarantors waive, to the fullest extent permitted by applicable law, the benefit of all "suretyship or Guarantors" defenses at law or in equity other than actual
- No Conditions Precedent. It is the intent hereof that the obligations of the Guarantors hereunder shall be and remain unaffected (a) by the existence or non-existence, validity or invalidity of any pledge, assignment or conveyance given as security; or (b) by any understanding or agreement that any other person, firm or corporation was or is to execute this Guaranty, or the notes or any other document or instrument relating to or evidencing said Indebtedness, or any part thereof, or (c) by resort on the part of Holder to any other security or remedy for the collection of said Indebtedness; or (d) by the death or bankruptcy of Guarantors, or if more than one Guarantors has guaranteed the Indebtedness, by the death or bankruptcy of any one or more of such Guarantors, and in case of any such death or bankruptcy, by failure of Holder to file claim against any deceased Guarantors' estate or against any such bankrupt's estate, as the case may be, for the amount of such decedent's or such bankrupt's liability hereunder.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to the 2025 Caring Senior Service FDD, the Guaranty does not specify any limits on the amount of indebtedness that can be guaranteed. The guarantor's obligations are independent of the borrower's, and Caring Senior Service can pursue action against the guarantors whether or not they take action against the borrower.
The guaranty remains unaffected by the existence or validity of any security pledges, agreements that other parties would execute the guaranty, or Caring Senior Service's recourse to other collection methods. The guaranty is also unaffected by the death or bankruptcy of the guarantors.
This means that as a Caring Senior Service franchisee, you and your guarantors could be held fully responsible for the entire amount of the indebtedness, regardless of any collateral or other factors. Prospective franchisees should carefully consider this open-ended commitment and seek legal counsel to fully understand the implications of the guaranty.