Does the Guaranty and Assumption of Obligations for Focalpoint Coaching require the guarantor to waive any rights?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (1) his or her direct and immediate liability under this Guaranty will be joint and several, both with Franchisee and among other guarantors; (2) he or she will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) this liability will not be contingent or conditioned upon our pursuit of any remedies against Franchisee or any other person; (4) this liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence which we may at any time and from time to time grant to Franchisee or to any other person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims (including the release of other guarantors), none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the term of the Agreement (including extensions), for so long as any performance is or might be owed under the Agreement by Franchisee or its owners, and for so long as we have any cause of action against Franchisee or its owners; and (5) this Guaranty will continue in full force and effect for (and as to) any extension or modification of the Agreement and despite the transfer of any interest in the Agreement or Franchisee, and each of the undersigned waives notice of any and all renewals, extensions, modifications, amendments, or transfers.
Each of the undersigned waives: (i) all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the undersigned's execution of and performance under this Guaranty; and (ii) acceptance and
notice of acceptance by us of his or her undertakings under this Guaranty, notice of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed, protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed, and any other notices to which he or she may be entitled.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the Guaranty includes waivers of certain rights by the guarantor. Specifically, the guarantor waives rights to payments and claims for reimbursement or subrogation against the franchisee that arise from the guarantor's execution of and performance under the Guaranty.
Additionally, the guarantor waives the right to receive notice of acceptance of the Guaranty by Focalpoint Coaching, notice of demand for payment of any guaranteed debt or non-performance, protest and notice of default, and any other notices they might otherwise be entitled to.
These waivers mean that the guarantor's obligations are direct and not contingent on Focalpoint Coaching first pursuing the franchisee. The guarantor remains liable even if Focalpoint Coaching grants extensions or other indulgences to the franchisee. The Guaranty remains in effect during any extensions or modifications of the Franchise Agreement and despite any transfer of interest in the Agreement or the franchisee. This ensures Focalpoint Coaching has a straightforward path to recourse should the franchisee default, without needing to navigate potential legal challenges or delays from the guarantor.