Does the Aerus guarantor waive the right to notice of presentment, demand, and protest?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Notice of acceptance of this Guarantee, the making of loans and advances and providing other financial accommodations to Borrower and presentment, demand, protest, notice
of protest, notice of nonpayment or default and all other notices to which Borrower or Guarantor is entitled are hereby waived by Guarantor. Guarantor also waives notice of and hereby consents to, (iii) any amendment, modification, supplement, extension, renewal, or restatement of the Note and any of the other Financing Agreements, including, without limitation, extensions of time of payment of or increase or decrease in the amount of any of the Guaranteed Obligations, interest rate, fees, other charges, or any collateral, and the guarantee made herein shall apply to the Note and the other Financing Agreements and the Guaranteed Obligations as so amended, modified, supplemented, renewed, restated or extended, increased or decreased, (iv) the taking, exchange, surrender and releasing of collateral or guarantees now or at any time held by or available to Lender for the obligations of Borrower or any other party at any time liable on or in respect of the Guaranteed Obligations or who is the owner of any property which is security for the Guaranteed Obligations (individually, an "Obligor" and collectively, the "Obligors"), (v) the exercise of, or refraining from the exercise of any rights against Borrower or any other Obligor or any collateral and (vi) the settlement, compromise or release of, or the waiver of any default with respect to, any of the Guaranteed Obligations. Guarantor agrees that the amount of the Guaranteed Obligations shall not be diminished and the liability of Guarantor hereunder shall not be otherwise impaired or affected by any of the foregoing.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the guarantor does waive certain rights, including the right to notice of presentment, demand, and protest. Specifically, the guarantor waives notice of acceptance of the guarantee, the making of loans and advances, and the provision of other financial accommodations to the borrower. This waiver extends to all notices to which the borrower or guarantor would otherwise be entitled.
This means that if you act as a guarantor for an Aerus franchisee's obligations, you will not be entitled to receive formal notifications about certain financial actions or defaults related to the franchisee's agreement. This could include notifications about loan acceptance, loan advancements, or if the franchisee fails to meet their financial obligations. By waiving these notices, the guarantor agrees to be bound by the franchisee's obligations without necessarily receiving immediate updates on the franchisee's financial dealings or potential defaults.
Additionally, the guarantor also waives notice of and consents to any amendments, modifications, supplements, extensions, renewals, or restatements of the note and any of the other financing agreements. This includes extensions of time of payment, increases or decreases in the amount of any of the guaranteed obligations, interest rate, fees, other charges, or any collateral. The guarantor also waives notice of the taking, exchange, surrender, and releasing of collateral or guarantees. This broad waiver underscores the importance of carefully considering the risks associated with acting as a guarantor for an Aerus franchise, as it limits the guarantor's ability to stay informed about changes to the financial agreements and potential risks.