What notices does the guarantor waive under the Aw Guaranty and Assumption of Obligations?

According to Aw's 2025 Franchise Disclosure Document, the guarantor waives several notices under the Guaranty and Assumption of Obligations. These waivers are significant because they limit the guarantor's ability to claim they were unaware of certain actions or defaults related to the franchise agreement.

Specifically, the guarantor waives: (1) acceptance and notice of acceptance by Aw of the undertakings; (2) notice of demand for payment of any indebtedness or non-performance of any obligations guaranteed; (3) protest and notice of default to any party regarding the guaranteed indebtedness or non-performance; (4) any right to require that an action be brought against the franchisee or any other person as a condition of liability; and (5) any and all other notices and legal or equitable defenses to which they may be entitled.

These waivers mean that Aw does not have to notify the guarantor of various events, such as the franchisee's failure to pay or perform, before seeking recourse from the guarantor. The guarantor is essentially agreeing to be immediately and directly liable for the franchisee's obligations without needing to be informed of each specific instance of default. This arrangement streamlines the process for Aw to pursue remedies in case of a breach by the franchisee, but it places a greater responsibility on the guarantor to monitor the franchisee's compliance with the franchise agreement. A prospective Aw franchisee should carefully consider the implications of these waivers and seek legal counsel to fully understand their obligations under the Guaranty and Assumption of Obligations.