Under the Hear Again America Guaranty, is the liability of the undersigned direct and immediate?
Hear_Again_America Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned consents and agrees that:
- the undersigned's direct and immediate liability under this Guaranty shall be joint and several with all signatories to this and similar guaranties of Franchisee's obligations;
- the undersigned shall render any payment or performance required under the Franchise Agreement upon demand if Franchisee fails or refuses punctually to do so;
- this Guaranty shall apply to any claims Franchisor may have due to return of any payments or property Franchisor may have received from Franchisee as a preference, fraudulent transfer or conveyance or the like in any legal proceeding;
- such liability shall not be contingent or conditioned upon pursuit by Franchisor of any remedies against Franchisee or any other person; and
- such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which Franchisor may from time to time grant to Franchisee or any other person, including without limitation, the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which in any way modify or amend this Guaranty, which shall be continuing and irrevocable during and after the terms of the Franchise Documents,
as the same may be amended or renewed, until Franchisee's duties and obligations to Franchisor are fully discharged and satisfied.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hear Again America Franchise Disclosure Document, the liability of anyone signing the Guaranty is direct and immediate. The document specifies that the liability under the Guaranty is joint and several with all signatories. This means that each guarantor is fully responsible for the entire debt or obligation, not just a portion of it. Hear Again America can pursue any or all of the guarantors for the full amount owed.
Furthermore, the guarantor is required to fulfill any payment or performance obligations outlined in the Franchise Agreement immediately upon demand if the franchisee fails to do so. This obligation is not contingent on Hear Again America first pursuing remedies against the franchisee or any other party. The guarantor's liability remains in effect regardless of any extensions of time, credit, or other allowances Hear Again America might grant to the franchisee.
This arrangement protects Hear Again America by ensuring they have multiple avenues for recourse if the franchisee defaults. For a potential Hear Again America franchisee, this means that anyone signing a guaranty agreement is taking on a significant and immediate financial responsibility. They should fully understand the terms of the Franchise Agreement and the potential liabilities they are guaranteeing.