Does the Browns Chicken Sublease Guaranty include a waiver of notice of demand for payment of any indebtedness or nonperformance of any obligations?

According to Browns Chicken's 2025 Franchise Disclosure Document, the Sublease Guaranty does include a waiver of notice of demand for payment of any indebtedness or nonperformance of any obligations. Specifically, the guarantor waives notice of demand for payment of any indebtedness or nonperformance of obligations hereby guaranteed. This means that Browns Chicken does not have to formally demand payment or notify the guarantor of nonperformance before taking action on the guaranty.

This waiver is part of a broader set of waivers included in the guaranty. The guarantor also waives acceptance and notice of acceptance by Browns Chicken of the undertakings, protest and notice of default to any party, any right to require action against the Sublessee first, and any other notices or legal defenses. These waivers are designed to streamline the process for Browns Chicken to enforce the guaranty in case of default by the Sublessee.

The guarantor also consents to several conditions, including joint and several liability, immediate payment upon demand if the Sublessee fails to pay, and that liability is not contingent upon Browns Chicken pursuing remedies against the Sublessee first. The guarantor's obligations remain even if Browns Chicken grants extensions or compromises with the Sublessee. These provisions collectively strengthen Browns Chicken's position and reduce potential legal challenges to the guaranty.

For a prospective Browns Chicken franchisee, this means that if they sublease their premises and a guaranty is required, the guarantor will be giving up significant rights and defenses. It is important for the franchisee to ensure that any potential guarantor fully understands the implications of these waivers and consents before signing the Sublease Guaranty.