Under what circumstances will the liabilities and obligations of a Deka Lash Guarantor NOT be released or discharged?
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, the liabilities and obligations of a Guarantor are extensive and will generally remain in effect until the franchisee's obligations are fully satisfied. This means that even if the franchisor takes actions that might otherwise release a guarantor, such as releasing the franchisee from their obligations, dealing with the franchisee in a certain way, or altering the franchise agreement, the guarantor's obligations will continue.
Specifically, the guarantor's liabilities are not affected by events like the franchisor releasing or discharging the franchisee, any actions the franchisor takes concerning the franchisee, changes or modifications to the franchise agreements, compromises or reorganizations affecting the franchisee, or the franchisee's bankruptcy or insolvency. These obligations are continuing and will only terminate once the franchisee has fully met all their responsibilities under the Franchise Agreement.
This provision is designed to protect Deka Lash by ensuring that there is always a party responsible for fulfilling the financial and operational obligations of the franchise, regardless of the franchisee's circumstances. Prospective franchisees should be aware that if they require a guarantor, that guarantor is making a long-term commitment that will not be easily discharged. The guarantor also waives rights to require Deka Lash to pursue the franchisee first before seeking fulfillment of the obligations from the guarantor.