What rights does the Principal waive under the Buff City Soap Guaranty?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
Principal hereby unconditionally agrees to be personally bound by, and personally liable for, the breach of each and every provision in the Agreement, both monetary obligations and obligations to take or refrain from taking specific actions, or to engage or refrain from engaging in specific activities.
Principal consents and agrees that it will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so.
Principal consents and agrees that such liability will not be contingent or conditioned upon pursuit by Franchisor of any remedies against Franchisee or any other Person and waives any right it may have to require that an action be brought against Franchisee or any other Person as a condition of his or her liability. Principal further waives protest and notice of default, demand for payment or nonperformance or any obligations guaranteed, and any and all other notices and legal or equitable defenses to which Principal may be entitled in its capacity as guarantor.
Principal consents and agrees that such liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence that Franchisor may periodically 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 will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the Term.
Principal waives all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the undersigned's execution of and performance under this Guaranty. This Guaranty and all claims arising from, under or with respect to the relationship between Franchisor and Principal(s) will be interpreted, enforced and governed by the laws of Texas (without regard to Texas conflicts of law rules).
Principal further acknowledges and agrees as follows:
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap FDD, the Principal executing the Guaranty and Undertaking of Obligations agrees to be personally bound by and liable for any breaches of the Franchise Agreement, including both monetary obligations and requirements to take or refrain from specific actions. This means the Principal's personal assets are at risk if the Buff City Soap franchisee fails to meet its obligations.
The Principal consents to render any payment or performance required under the agreement if the franchisee fails to do so, upon demand from Buff City Soap. The Principal's liability is not contingent on Buff City Soap first pursuing remedies against the franchisee or any other party. The Principal waives any right to require Buff City Soap to bring an action against the franchisee before seeking recourse from the Principal.
Furthermore, the Principal waives protest and notice of default, demand for payment or nonperformance of any guaranteed obligations, and any other legal or equitable defenses they might have as a guarantor. The Principal's liability will not be diminished by any extensions of time, credit, or other indulgences that Buff City Soap may grant to the franchisee. This includes acceptance of partial payments or compromise of claims. The guaranty is continuing and irrevocable during the term of the Franchise Agreement.
Finally, the Principal waives all rights to payments and claims for reimbursement or subrogation against the franchisee arising from their performance under the Guaranty. The Guaranty is governed by Texas law, without regard to its conflict of law rules. This comprehensive waiver ensures that Buff City Soap has direct recourse to the Principal's assets should the franchisee default, providing significant protection to the franchisor.