Does the Browns Chicken Sublease Guaranty include a waiver of any and all other notices to which he may be entitled?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the Sublease Guaranty does include a waiver of certain notices. Specifically, each guarantor waives "any and all other notices and legal or equitable defenses to which he may be entitled." This means that individuals signing the guaranty agree to relinquish their right to receive various notices related to the guaranteed obligations and any legal or equitable defenses they might otherwise have.
This waiver has significant implications for anyone acting as a guarantor for a Browns Chicken franchise. By signing the guaranty, they are essentially agreeing to be held liable for the franchisee's obligations without necessarily receiving notice of every potential issue or default. This could include waiving the right to be notified of non-payment or non-performance by the franchisee.
Prospective guarantors should carefully consider the risks associated with this waiver. They should seek legal counsel to fully understand the extent of the obligations they are undertaking and the rights they are giving up. It is crucial to assess the franchisee's financial stability and business acumen before agreeing to guarantee their obligations, as the guarantor's personal assets could be at risk if the franchisee defaults. Browns Chicken also does not provide disclosures regarding the financial condition of the franchisee or any guarantor of the franchisee.