Is a Brain Balance guarantor entitled to protest and notice of default?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor hereby expressly waives:
(1) acceptance and notice of acceptance by FRANCHISOR, of the foregoing undertakings;
(2) notice of demand for payment of any indebtedness or non performance of any obligations hereby guaranteed;
(3) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed;
(4) any right he or she may have to require that an action be brought against FRANCHISEE, Guarantor or any other person as a condition of liability;
(5) any requirement that FRANCHISOR proceed against or exhaust its remedies with respect to FRANCHISEE or any other person before demanding payment or performance by Guarantor; and
(6) any and all other notices and legal or equitable defenses to which he or she may be entitled. Each Guarantor consents and agrees that:
(1) his or her direct and immediate liability under this guaranty shall be joint and several;
(2) he or she shall render any payment or performance required under the Agreement upon demand if FRANCHISEE fails or refuses to do so punctually;
(3) such liability shall not be contingent or conditioned upon pursuit by FRANCHISOR of any remedies against FRANCHISEE or any other person;
(4) such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which FRANCHISOR may, from time to time, grant to FRANCHISEE or to any other person, including without limitation the acceptance of any partial
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, a guarantor is not entitled to protest and notice of default. The guarantor expressly waives the right to protest and notice of default regarding any guaranteed indebtedness or nonperformance of obligations. This waiver means that Brain Balance can immediately pursue the guarantor for any of the franchisee's debts or failures to meet obligations without first providing notice or allowing the guarantor to protest.
Furthermore, the guarantor also waives the right to demand that Brain Balance first take action against the franchisee or any other person before seeking payment or performance from the guarantor. The guarantor also relinquishes any right to require Brain Balance to exhaust its remedies concerning the franchisee before demanding payment or performance by the guarantor. This underscores the guarantor's direct and immediate liability, which is joint and several, meaning Brain Balance can pursue one or all guarantors for the full amount owed.
The guarantor's obligations are not contingent upon Brain Balance pursuing remedies against the franchisee. The guarantor's liability remains unaffected even if Brain Balance grants extensions of time, credit, or other indulgences to the franchisee, such as accepting partial payments or compromising claims. The guarantor's obligations remain irrevocable during the term of the agreement, and any modifications to the agreement between Brain Balance and the franchisee do not diminish the guarantor's responsibilities.