Under what conditions does the guarantee of performance for the Management Recruiters franchise continue?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
For value received, HireQuest, Inc., a Delaware Corporation (the "Guarantor"), located at 111 Springhall Drive, Goose Creek, SC, 29445, absolutely and unconditionally guarantees to assume the duties and obligations of HQ MRI Corporation, located at 111 Springhall Drive, Goose Creek, SC, 29445 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2024 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
The Guarantor signs this guarantee at 111 Springhall Drive, Goose Creek, SC, 29445 on the 8th day of May 2024.
Guarantor: HireQuest, Ir
Name: John D. McAnnar
Title: Chief Legal Officer
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, HireQuest, Inc. guarantees the duties and obligations of HQ MRI Corporation under its franchise registration and Franchise Agreement. This guarantee remains in effect until all obligations of HQ MRI Corporation under the franchise registrations and the Franchise Agreement are fulfilled. The guarantee also continues until the liability of HQ MRI Corporation to its franchisees under the Franchise Agreement has been completely discharged, whichever event occurs first.
Specifically, HireQuest, Inc. is not released from liability if a franchisee's claim against HQ MRI Corporation remains outstanding. This means that even if HQ MRI Corporation attempts to transfer or assign its obligations, HireQuest, Inc.'s guarantee will persist until all franchisee claims are resolved. The guarantor, HireQuest, Inc., waives the right to receive notice of acceptance of the guarantee but does not waive the right to receive notice of default on the part of the Franchisor, HQ MRI Corporation.
This guarantee is binding on HireQuest, Inc., as the Guarantor, as well as its successors and assigns. This ensures that the guarantee remains enforceable even if HireQuest, Inc. undergoes changes in ownership or structure. The guarantee was signed on May 8, 2024, by John D. McAnnar, Chief Legal Officer of HireQuest, Inc., indicating the company's commitment to upholding the obligations outlined in the Franchise Agreement.