Does the Aerus guarantor waive the right to notice of acceptance of the guarantee?

According to Aerus's 2025 Franchise Disclosure Document, the guarantor waives the right to notice of acceptance of the guarantee. Specifically, the guarantor waives notice of acceptance of the guarantee, the making of loans and advances, and providing other financial accommodations to the borrower. The guarantor also waives presentment, demand, protest, notice of protest, notice of nonpayment or default, and all other notices to which the borrower or guarantor is entitled.

This waiver means that the guarantor will not receive formal notification when the guarantee is accepted, when loans or advances are made to the borrower, or when other financial accommodations are provided. Additionally, the guarantor will not be notified of any defaults or nonpayment by the borrower. This places a significant responsibility on the guarantor to stay informed about the borrower's financial obligations and performance without relying on formal notices from the lender.

This type of waiver is common in franchise agreements where a personal guarantee is required, as it streamlines the process for the lender and allows them to act quickly in case of default. However, it also increases the risk for the guarantor, who may be unaware of potential issues until they are already facing financial liability. Prospective Aerus franchisees who are asked to provide a guarantee should carefully consider the implications of these waivers and seek legal counsel to fully understand their obligations and potential risks.