Does each guarantor of Browns Chicken waive notice of demand for payment of any indebtedness?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Each of the undersigned waives: (1) acceptance and notice of acceptance by the Company of the foregoing undertakings; (2) notice of demand for payment of any indebtedness or nonperformance of any Obligations hereby guaranteed; (3) protest and notice of default to any party with respect to the indebtedness or nonperformance of Obligations hereby guaranteed; (4) any right he may have to require that an action be brought against Franchisee or any other person as a condition of liability; (5) any and all other notices and legal or equitable defenses to which he may be entitled; and (6) any right to disclosures from the Company regarding the financial condition of Franchisee or any guarantor of Franchisee.
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- Each of the undersigned consents and agrees that: (1) his direct and immediate liability under this guaranty shall be joint and several; (2) he shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) such liability shall not be contingent or conditioned upon pursuit by the Company 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 the Company may from time to time grant to Franchisee or to any other person, including without limitation the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend his guaranty, which shall be continuing and irrevocable during the term of the Agreement; and (5) no claim, including a claim for contribution or subrogation, which any of the undersigned may have against a co-guarantor of any of the Obligations or Franchisee shall be enforced nor any payment accepted until the Obligations are paid in full and the payments are not subject to any right of recovery.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, each guarantor does waive notice of demand for payment of any indebtedness. Specifically, each guarantor waives acceptance and notice of acceptance by the company of the undertakings, and waives notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed.
In addition, the guarantor waives protest and notice of default to any party with respect to the indebtedness or nonperformance of obligations guaranteed. They also waive any right to require that an action be brought against the franchisee or any other person as a condition of liability. The guarantor gives up any and all other notices and legal or equitable defenses to which he may be entitled, along with any right to disclosures from the company regarding the financial condition of the franchisee or any guarantor of the franchisee.
Furthermore, each guarantor consents and agrees that their direct and immediate liability under the guaranty is joint and several. They agree to render any payment or performance required under the agreement upon demand if the franchisee fails or refuses to do so punctually. This liability is not contingent or conditioned upon pursuit by the company of any remedies against the franchisee or any other person. The liability will also not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence granted to the franchisee, including the acceptance of any partial payment or performance, or the compromise or release of any claims. No claim, including a claim for contribution or subrogation, which any of the guarantors may have against a co-guarantor or the franchisee, can be enforced nor any payment accepted until the obligations are paid in full and the payments are not subject to any right of recovery.