What does the Guarantor irrevocably and unconditionally guarantee to Hyatt regarding The Standardx franchise?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, as a condition to entering into the Franchise Agreement, Hyatt has required that Guarantor guarantee the payment and performance of the Guaranteed Obligations (as defined herein), subject to the terms of this Guaranty.
NOW, THEREFORE, as a material inducement to Hyatt entering into the Franchise Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor hereby does irrevocably and unconditionally warrant and represent unto and covenant as follows:
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- Recitals; Defined Terms. The recitals above are a part of this Guaranty, form a basis for this Guaranty, and shall be considered prima facie evidence of the facts and documents referred to therein. Defined terms used but not defined herein shall have the meanings ascribed to them in the Franchise Agreement.
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- Guaranty. Guarantor hereby irrevocably and unconditionally personally guarantees to Hyatt and its successors and assigns Franchisee's punctual payment and performance of, and agrees to be personally bound by and personally liable for the breach of, each and every Guaranteed Obligation. Guarantor hereby irrevocably and unconditionally covenants and agrees that it is liable for the Guaranteed Obligations as a primary obligor.
- H-1 3. Guaranteed Obligations. As used herein, the term "Guaranteed Obligations" means (i) Franchisee's payment in full of all of Franchisee's monetary obligations including but
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the Guarantor provides an irrevocable and unconditional personal guarantee to Hyatt, ensuring the franchisee's punctual payment and performance of all Guaranteed Obligations. This means the Guarantor is personally bound by and liable for any breaches of these obligations. The Guarantor also agrees to be liable as a primary obligor, meaning Hyatt can pursue the Guarantor directly without first seeking remedies from the franchisee.
The "Guaranteed Obligations" specifically include the franchisee's full payment of all monetary obligations. This encompasses a wide range of potential financial responsibilities the franchisee has to Hyatt. The Guarantor's obligations remain in effect during and after the term of the Franchise Agreement, including any extensions, as long as any performance is owed or Hyatt has a cause of action against the franchisee or its guarantors.
Furthermore, the Guarantor consents to several conditions that reinforce the strength of the guarantee. The Guarantor's liability is joint and several with the franchisee and any other guarantors, meaning each party is fully liable for the entire debt. Hyatt is not obligated to pursue remedies against the franchisee before demanding payment or performance from the Guarantor. The Guarantor's liability will not be affected by any extensions of time, credit, or other indulgences Hyatt grants to the franchisee. The Guarantor also waives notice of any renewals, extensions, modifications, amendments, or transfers related to the Franchise Agreement.
These terms highlight the significant financial risk assumed by the Guarantor. Prospective franchisees should carefully consider the implications of this guarantee and ensure that any Guarantor fully understands their obligations and potential liabilities. It is advisable to seek legal counsel to review the Guaranty agreement and assess the financial risks involved.