Are Brain Balance guarantors entitled to any and all other notices and legal or equitable defenses?
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.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, guarantors are not entitled to any and all other notices and legal or equitable defenses. The guarantor expressly waives any and all other notices and legal or equitable defenses to which he or she may be entitled.
This waiver means that a guarantor cannot claim lack of notice or assert legal or equitable defenses to avoid their obligations under the guaranty. This is a significant commitment, as the guarantor is agreeing to be fully responsible for the franchisee's obligations without the ability to raise typical defenses that might otherwise be available.
Prospective Brain Balance franchisees should carefully consider the implications of this waiver and seek legal counsel to fully understand their rights and obligations as a guarantor. The franchisor is seeking to ensure that it has recourse against the guarantor without facing potential legal challenges or delays based on lack of notice or other defenses.