What costs are the Guarantors responsible for paying under the Caring Transitions Guaranty?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantors agree to pay all costs, including reasonable attorneys' fees, incurred by Franchisor to collect or otherwise enforce the terms of this Guaranty.
Guarantors understand and agree that any modification of the Franchise Agreement, including any addendum or addenda thereto, or waiver by the Franchisor of the performance by the Franchisee of its obligations thereunder, or the giving by the Franchisor of any extension of time for the performance of any of the obligations of the Franchisee thereunder, or any other forbearance on the part of the Franchisor or any failure by the Franchisor to enforce any of its rights under the Franchise Agreement, including any addendum or addenda thereto, shall not in any way release Guarantors from liability hereunder or terminate, affect or diminish the validity of this Guaranty, except to the same extent, but only to such extent, that the liability or obligation of the Franchisee is so released, terminated, affected or diminished. Notice to Guarantors of any such modification, waver, extension or forbearance under the terms thereof is hereby waived.
Guarantors hereby waive any and all notice of default on the part of the Franchisee; waive exhausting of recourse against the Franchisee; and consent to any assignment of the Franchise Agreement, in whole or in part, that the Franchisor or its assignees may make.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the Guarantors agree to pay all costs, including reasonable attorneys' fees, incurred by Caring Transitions to collect or otherwise enforce the terms of the Guaranty. This means that if Caring Transitions has to take legal action to ensure the franchisee fulfills their obligations, the Guarantors are responsible for covering those legal expenses.
The Guarantors also understand and agree that any modification of the Franchise Agreement, waiver by Caring Transitions, extension of time for performance, or any other forbearance on the part of Caring Transitions, or any failure by Caring Transitions to enforce its rights under the Franchise Agreement, will not release the Guarantors from liability. The Guarantors are only released from liability to the extent that the franchisee's liability or obligation is released, terminated, affected, or diminished. Notice to Guarantors of any such modification, waiver, extension, or forbearance is waived.
Furthermore, the Guarantors waive any notice of default on the part of the franchisee and waive the need for Caring Transitions to exhaust all options against the franchisee before seeking recourse from the Guarantors. They also consent to any assignment of the Franchise Agreement that Caring Transitions or its assignees may make. This section outlines the Guarantor's responsibilities and waivers, ensuring they remain liable for the franchisee's obligations even if the original agreement is modified or assigned.