When does the Deka Lash Guaranty terminate for each Guarantor?
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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the liabilities and obligations of each Guarantor are continuing in nature. The Guaranty terminates only when the franchisee has satisfied all obligations under the Franchise Agreement.
This means that any individual who signs as a Guarantor, including spouses, is personally guaranteeing the franchisee's performance of all obligations under the agreement. This includes, but is not limited to, financial obligations such as payments owed to Deka Lash.
This guarantee remains in effect for the entire term of the agreement, and even survives changes or modifications to the agreement, compromises, arrangements, or reorganization plans affecting the franchisee, or even the franchisee's bankruptcy or insolvency. The Guarantor's obligations are only discharged once all of the franchisee's obligations have been completely fulfilled. This is a significant commitment and potential franchisees should carefully consider the implications before asking someone to act as a Guarantor.