What notices does the 7 Brew guarantor waive under the Guaranty?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
This Undertaking 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 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 the undersigned may have against Franchisee arising as a result of the undersigned's execution of and performance under this Undertaking, for the express purpose that none of the undersigned will be deemed a "creditor" of Franchisee under any applicable bankruptcy law with respect to Franchisee's obligations to Franchisor; (ii) acceptance and notice of acceptance by Franchisor of his or her undertakings under this Undertaking, notice of nonperformance of any obligations hereby assumed, protest and notice of default to any party with respect to the nonperformance of any obligations hereby assumed, and any other notices and legal or equitable defenses to which he or she may be entitled; and (iii) all rights to assert or plead any
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the guarantor waives specific notices related to the obligations assumed under the Guaranty. The guarantor is essentially agreeing to remain liable even if certain changes or events occur.
Specifically, the guarantor waives notice of any and all renewals, extensions, modifications, amendments, or transfers related to the franchise agreement. This means that the guarantor's obligations remain in effect even if the agreement is altered or transferred without the guarantor being informed. Additionally, the guarantor waives acceptance and notice of acceptance by 7 Brew of his or her undertakings under this Undertaking, notice of nonperformance of any obligations hereby assumed, protest and notice of default to any party with respect to the nonperformance of any obligations hereby assumed, and any other notices and legal or equitable defenses to which he or she may be entitled.
This waiver is significant because it means the guarantor will not receive formal notifications about various actions or defaults related to the franchisee's performance. The guarantor is giving up the right to be informed about these events, which could impact their liability. Prospective franchisees should carefully consider the implications of this waiver and understand the full extent of their obligations as a guarantor, as well as consult with a legal professional.