Does Buildingstars have to pursue other remedies before enforcing the Promissory Note Guarantee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
The obligations of GUARANTOR are direct and may be enforced immediately without FRANCHISOR being required to resort to any other right, remedy or security and this Guarantee shall be enforceable immediately against GUARANTOR, without the necessity for any suit or proceedings on FRANCHISOR'S part of any kind or nature whatsoever against FRANCHISEE, and without the necessity of any notice of non-payment, non-performance or non-observance or the continuance of any such default or of any notice of acceptance of this Guarantee or of FRANCHISOR'S intention to act in reliance herein or of any other notice or demand to which GUARANTOR might otherwise be entitled, all of which GUARANTOR hereby expressly waives.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars does not have to pursue other remedies before enforcing the Promissory Note Guarantee. The guarantee is a direct obligation of the guarantor, meaning Buildingstars can immediately seek enforcement without first pursuing any other rights, remedies, or security.
Buildingstars can immediately enforce the guarantee against the guarantor without needing to sue or initiate proceedings against the franchisee. Additionally, Buildingstars is not required to provide any notice of non-payment, non-performance, or non-observance of the promissory note's terms. The guarantor also waives any right to notice of acceptance of the guarantee or of Buildingstars' intention to rely on it.
This clause provides Buildingstars with a streamlined process for recovering fees owed under the Promissory Note, as it allows them to bypass potentially lengthy and costly legal actions against the franchisee directly and instead pursue the guarantor immediately. Prospective franchisees should be aware of this provision and ensure that any individual acting as a guarantor fully understands their obligations and potential liabilities under the Promissory Note Guarantee.