What notices does each Obligor waive under the Best Brains Promissory Note?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Each person liable on this Note in any capacity, whether as maker, endorser, surety, guarantor or otherwise, and any holder (collectively hereafter "Obligor"), waives the benefit of the homestead exemption and of all other exemptions available to him and also waives presentment, demand, protest, notice of dishonor and all other notices of every kind and nature to which he would otherwise be entitled under the applicable law. Each Obligor agrees that Holder may take any one or more of the following actions, on one or more occasions, whether before or after the maturity of this Note, without any notice to such Obligor, without any further consent to such actions, and without releasing or discharging such Obligor from liability on the Note: (a) any extension or extensions of the time of payment of any principal, interest or other amount due and payable under this Note; (b) any renewal of this Note, in whole or in part; (c) any full or partial release or discharge from liability under this Note of any other Obligor; (d) any waiver of any default under this Note or other agreement between the Lender and any Obligor relating to the indebtedness evidenced by this Note; or (e) any agreement with the Maker changing the rate of interest or any other term or condition of this Note.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, an Obligor, defined as any person liable on the Promissory Note, including makers, endorsers, sureties, and guarantors, waives certain rights and notices. Specifically, the Obligor waives the benefit of the homestead exemption and all other exemptions available to them.
In addition to waiving exemptions, the Obligor also waives presentment, demand, protest, notice of dishonor, and all other notices of every kind and nature that they would otherwise be entitled to under applicable law. This means that Best Brains, as the note holder, is not required to provide these standard legal notices to the Obligor.
Furthermore, the holder of the note can take certain actions without notice to the Obligor, such as extending payment timelines, renewing the note, releasing other Obligors, waiving defaults, or changing interest rates or other terms. This waiver significantly favors Best Brains by granting them considerable flexibility in managing the note without needing to inform or seek consent from the Obligor.