Does the Deka Lash Guaranty require spouses to sign and agree to the terms of the Franchise Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
In addition, the signatures of all individuals below, in any capacity, including spouses, also constitute their personal joint and several agreement to perform all the obligations in and relating to this Agreement, including, but not limited to, the obligations stated in Paragraphs 11-13 above, the obligation to make specified payments, and pay any other debts due to us. Each Guarantor agrees to guarantee us against all liability, loss, harm, damage, costs, and expenses (including attorney fees) that we may incur because of your failure to observe your obligations. The liabilities and obligations of each Guarantor will not be released, discharged, or affected by our release or discharge of or dealing with you under any of these agreements; or by anything we do, suffer, or allow to be done in relation to you; or by change, alteration, or modification of any of the agreements; or by any compromise, arrangement, or plan of reorganization affecting you; or by your bankruptcy or insolvency; or by any other act or proceeding in relation to you or any of the agreements by which any Guarantor might otherwise be released. The liabilities and obligations of each Guarantor pursuant to this Guarantee will be continuing in nature and will terminate only on the satisfaction of your obligations under this Agreement. All Signators below waive any right to presentment, demand, notice of non-performance, or the right to require us to proceed against the other Signators.
APPROVED AND AGREED TO BY:
FRANCHISOR FRANCHISEE DL Franchising, LLC (Name of corporation, partnership, limited d/b/a Deka Lash liability company or other legal entity or individually if blank) Signature: Signature: Name: Name: Title: Title: Date: Date: Signature: Name: Title: Date: Signature: Name: Title: Date: Signature: Name: Title: Date: SPOUSES: Signature: Name: Title: Date: Signature: Name: Title: Date: Signature: Name: Title: Date:
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the signature page of the Franchise Agreement includes a section for spouses to sign. The document states that the signatures of all individuals, including spouses, constitute their personal joint and several agreement to perform all obligations relating to the agreement. This includes obligations outlined in specific paragraphs of the agreement, the obligation to make specified payments, and to pay any other debts due to Deka Lash.
Spouses who sign the agreement also agree to guarantee Deka Lash against all liability, loss, harm, damage, costs, and expenses (including attorney fees) that Deka Lash may incur because of the franchisee's failure to observe their obligations. The liabilities and obligations of each guarantor will not be released or affected by any actions Deka Lash takes with the franchisee, any changes to the agreement, or any bankruptcy or insolvency of the franchisee. The obligations of each guarantor are continuing and will only terminate upon satisfaction of the franchisee's obligations under the agreement.
All signatories, including spouses, waive any right to presentment, demand, notice of non-performance, or the right to require Deka Lash to proceed against the other signatories. This means that Deka Lash can pursue any signatory, including a spouse, for any amounts owed without first having to demand payment from the franchisee or other guarantors. This clause ensures that Deka Lash has recourse to collect debts and enforce the agreement against all parties who have signed, providing an additional layer of security for the franchisor.
For a prospective Deka Lash franchisee, this means that if you are married, your spouse will likely be required to sign the Franchise Agreement and guarantee your obligations under the agreement. This is a significant commitment, as it makes your spouse personally liable for your business debts and obligations to Deka Lash. Before signing, both you and your spouse should carefully review the Franchise Agreement and understand the full extent of the obligations and liabilities you are undertaking.