What notices does the Guarantor waive under the Buildingstars Promissory Note Guarantee?

According to Buildingstars's 2025 Franchise Disclosure Document, the guarantor waives several notices related to the Promissory Note. These waivers mean that Buildingstars is not obligated to inform the guarantor of certain actions or defaults related to the franchisee's obligations.

Specifically, the guarantor waives (1) acceptance and notice of acceptance by Buildingstars, (2) notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed, (3) protest and notice of default to any party, (4) any right to require that an action be brought against the franchisee, (5) all rights to payments and claims for reimbursement or subrogation against the franchisee, and (6) any and all other notices and legal or equitable defenses.

This waiver has significant implications for the guarantor. By waiving these notices, the guarantor may be held liable for the franchisee's debts or non-performance without receiving prior notification or having the opportunity to take action. The guarantor's liability is direct and immediate, and Buildingstars is not required to pursue any remedies against the franchisee before enforcing the guarantee. This arrangement protects Buildingstars by streamlining the process of recovering funds in case of franchisee default, but it places a substantial risk on the guarantor.

Furthermore, the guarantor consents to joint and several liability, meaning each guarantor is fully responsible for the entire debt. The guarantor's obligations are not contingent upon Buildingstars pursuing remedies against the franchisee, and the liability is not affected by any extensions of time or credit granted to the franchisee. This underscores the importance of understanding the full extent of the obligations before agreeing to act as a guarantor for a Buildingstars franchise.