What rights do Deka Lash Guarantors waive under the Guaranty?
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 the 2024 Deka Lash Franchise Disclosure Document, all signators to the agreement, including guarantors, waive specific rights related to the enforcement of the agreement. This waiver is part of the personal joint and several agreement to fulfill all obligations pertaining to the franchise agreement, including financial responsibilities.
Specifically, guarantors waive any right to 'presentment, demand, notice of non-performance, or the right to require us to proceed against the other Signators.' In practical terms, this means that Deka Lash is not obligated to formally present the agreement for payment, make a demand for performance, or provide notice if the franchisee fails to meet their obligations. Furthermore, Deka Lash is not required to pursue other signators or guarantors before seeking recourse from any individual guarantor.
This waiver has significant implications for anyone acting as a guarantor for a Deka Lash franchise. By signing the agreement, the guarantor becomes immediately and fully liable for the franchisee's obligations without the typical legal protections that would otherwise require Deka Lash to first pursue other avenues of resolution. This arrangement is designed to protect Deka Lash by streamlining the process of recovering any losses or damages resulting from the franchisee's failure to meet their contractual obligations.
Prospective franchisees and their guarantors should carefully consider these waivers and understand the full extent of their financial exposure before signing the Deka Lash franchise agreement. It is advisable to seek legal counsel to fully understand the implications of these waivers and the potential risks involved.