Does the Browns Chicken Sublease Guaranty include a waiver of protest and notice of default?
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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the Sublease Guaranty includes a waiver of protest and notice of default. Specifically, the guarantor waives protest and notice of default to any party regarding the guaranteed indebtedness or nonperformance of obligations. The guarantor also waives any right to require that an action be brought against the franchisee or any other person as a condition of liability.
In addition, the guarantor waives any and all other notices and legal or equitable defenses to which they may be entitled, as well as any right to disclosures from the company regarding the franchisee's financial condition or any guarantor of the franchisee. This means the guarantor's obligations are direct and not contingent on Browns Chicken pursuing other remedies.
This waiver is significant because it streamlines the process for Browns Chicken to pursue remedies in case of default. The guarantor cannot claim lack of notice or demand that Browns Chicken first pursue the franchisee. Prospective franchisees should carefully review the Sublease Guaranty and understand the full extent of their obligations and waivers before signing.