Does the personal guaranty for a Bang Cookies franchise include a waiver of protest and notice of default?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, Franchisee has entered into a Bang Cookies Shop Franchise Agreement (the "Franchise Agreement") for the ownership, development and operation of a Bang Cookies Shop (the "Franchised Business");
WHEREAS, you have received and have thoroughly reviewed the completed Franchise Agreement, including the completed Schedules and Exhibits attached thereto;
WHEREAS, we have recommended that you thoroughly review the Franchise Agreement, this Agreement and all exhibits and schedules to the Franchise Agreement with a lawyer selected and hired by you;
6. Breach. You agree that failure to comply with the terms of this Agreement will cause irreparable harm to us and to our franchisor Bang Cookies Franchise LLC, and other Bang Cookies franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of these covenants will entitle us or our Franchisor Bang Cookies Franchise LLC to injunctive relief. You agree that we and/or our Franchisor Bang Cookies Franchise LLC may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, you agree that the amount of the bond shall not exceed $1,000. None of the remedies available to us under this Article are exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance and recovery of monetary damages.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
Based on the 2024 Bang Cookies Franchise Disclosure Document, the Franchise Owner and Spouse Agreement and Guaranty is an agreement that each owner of the franchisee and their spouses must personally execute. This agreement is attached to the Franchise Agreement as Exhibit 1. The document mentions that failure to comply with the terms of the agreement will cause irreparable harm to Bang Cookies, its franchisor, and other Bang Cookies franchisees. In the event of a violation, Bang Cookies or its franchisor may seek injunctive relief.
The agreement stipulates that the franchisee waives claims for damages resulting from the wrongful issuance of an injunction, with a bond not exceeding $1,000 if required by the court. The remedies available to Bang Cookies under this agreement are not exclusive and can be combined with others, including injunctive relief, specific performance, and monetary damages.
However, the excerpt does not explicitly state whether the personal guaranty includes a waiver of protest and notice of default. A prospective Bang Cookies franchisee should review Exhibit 1 of the Franchise Agreement and/or consult with a legal professional to fully understand the terms of the personal guaranty, including whether it contains a waiver of protest and notice of default.