What notices are waived by the undersigned under 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 Franchisee 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 Franchisee; (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 Franchisee; and (e) that they, and each of them, hereby waive notice of acceptance, demand, protest, nonperformance and of any other notices.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the personal guarantors waive certain notices related to the franchise agreement. Specifically, the guarantors waive notice of acceptance, demand, protest, and nonperformance. They also waive any other notices related to the agreement.
This waiver means that B Bops is not required to formally notify the personal guarantors about certain events related to the franchisee's performance or potential default. For example, B Bops does not need to notify the guarantors that the franchisee has not met its obligations or that B Bops is demanding payment or action from the franchisee.
This waiver is significant because it places the onus on the guarantors to proactively monitor the franchisee's compliance with the franchise agreement. The guarantors are responsible for ensuring the franchisee meets its obligations without relying on formal notices from B Bops. This arrangement protects B Bops by streamlining the process of enforcing the guaranty and collecting any outstanding debts or addressing breaches of the franchise agreement.
Prospective franchisees and their personal guarantors should carefully consider the implications of this waiver. They should understand that they are giving up the right to receive formal notifications about potential issues and must take an active role in overseeing the franchise's operations to mitigate their risk under the personal guaranty.