Does the Anago Guarantor waive notice of default or intent to accelerate with respect to the indebtedness of the Subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby waive:
a. acceptance and notice of acceptance by FRANCHISOR of the foregoing Guaranty;
b. notice of demand for payment of any indebtedness or nonperformance by SUBFRANCHISOR of any indebtedness or nonperformance by SUBFRANCHISOR of any of the Obligations;
c. presentment or protest of any instrument and notice thereof; and notice of default or intent to accelerate with respect to the indebtedness or nonperformance of any of the Obligations;
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Guarantor does waive notice of default or intent to accelerate with respect to the indebtedness or nonperformance of any of the obligations of the Subfranchisor. This waiver is part of a broader set of waivers the Guarantor makes to induce the Franchisor to enter into the Franchise Agreement.
By waiving these notices, the Guarantor agrees to be held liable for the Subfranchisor's obligations without necessarily receiving prior warning of any defaults or impending acceleration of debt. This means Anago can pursue the Guarantor directly if the Subfranchisor fails to meet their financial obligations, without first having to formally notify the Guarantor of the default or intent to accelerate the debt.
This arrangement benefits Anago by streamlining the process of recovering debts from a defaulting Subfranchisor, as they can immediately pursue the Guarantor without delay. However, it places a significant risk on the Guarantor, who may be held responsible for substantial debts without prior notice or opportunity to intervene. A prospective Anago franchisee acting as a guarantor should fully understand the implications of these waivers and the potential financial risks involved.