What notices are waived by the undersigned in the B Bops personal guaranty?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned further agree as follows: (a) that this Guaranty shall be continuing and irrevocable; (b) that they, and each of them, shall render any payment or performance required under this Agreement upon demand if Developer fails or refuses promptly to do so; (c) such liability shall be primary and shall not be contingent upon Company pursuing or exhausting any remedies against Developer; (d) such liability shall not be waived, diminished or otherwise affected by any extension of time, credit or other indulgence which Company may from time to time grant to Developer; and (e) that they, and each of them, hereby waive notice of acceptance, demand, protest, nonperformance and of any other notices.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, the personal guaranty requires the undersigned to waive certain notices. Specifically, the guarantor waives notice of acceptance, demand, protest, nonperformance, and any other notices related to the obligations under the Multiple-Unit Development Agreement. This waiver is part of the personal guaranty that partners or shareholders of the developer must agree to when entering into the Multiple-Unit Development Agreement with B Bops.
By waiving these notices, the guarantor agrees to be immediately responsible for the developer's obligations without requiring B Bops to provide any further notification. This means that if the developer fails to meet its obligations, B Bops can directly pursue the guarantor for payment or performance without first notifying them of the default or demanding action from the developer. This arrangement is designed to provide B Bops with a more direct and efficient recourse in case of a breach by the developer.
This waiver is a significant commitment for the guarantor, as it eliminates the opportunity to receive advance warning or to rectify the developer's default before being held personally liable. Prospective B Bops franchisees who are asked to sign a personal guaranty should carefully consider the implications of waiving these notices and seek legal counsel to fully understand their obligations and potential liabilities under the agreement.