What does each Bumper Man Guarantor waive under the Guaranty agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY is made this day of,, by and among |
|---|
| Bumper Man, Inc., a Texas corporation ("BMI") and the undersigned. |
| NOW IT IS HEREBY AGREED AS FOLLOWS: |
| In consideration of BMI's entering into the Promissory Note dated with |
| , a, as Maker (the "Note"), each of the undersigned |
| owners of the outstanding ownership interests in Maker and any other parties who sign |
| counterparts of this Guaranty (referred to herein individually as a "Guarantor" and collectively |
| as "Guarantors") hereby personally and unconditionally guarantees to BMI and its successors |
| and assigns full and prompt performance by Maker of all its obligations under the Note and the |
| due and punctual payments of all sums payable at any time or times under the Note (collectively, |
| the "Obligations"), when and as the same shall become due and undertakes with BMI that if and |
| each time that Maker shall be in default of the payment of any sum whatsoever under the Note, |
| each Guarantor will, on written demand from BMI, make good the default and perform all |
| Obligations and pay all sums which may become payable under the Note as if the Guarantor(s) |
| instead of Maker were therein expressed to assume the primary Obligations therefor, together |
| with interest thereon at the rate per annum from time to time payable thereunder until payment of |
| such sums in full. The liability of the undersigned shall not be contingent or conditioned upon |
| pursuit by BMI of any remedies against Maker or any other person. |
| Each Guarantor waives: |
| (1) acceptance and notice of acceptance by BMI 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 any Obligations hereby guaranteed; (4) any right such Guarantor might have to require that an action be brought against Maker or any other person as a condition of liability; (5) all rights to payments and claims for reimbursement or subrogation which such Guarantor might have against Maker arising as a result of the execution of and performance under this Guaranty; and (6) any and all other notices and legal or equitable defenses to which such Guarantor might be entitled
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, each Guarantor waives several rights and notices under the Guaranty agreement. Specifically, they waive acceptance and notice of acceptance by Bumper Man of the undertakings, notice of demand for payment of any indebtedness, nonperformance of any Obligations hereby guaranteed, protest and notice of default to any party with respect to the indebtedness or nonperformance of any Obligations hereby guaranteed, and any right such Guarantor might have to require that an action be brought against Maker or any other person as a condition of liability.
Additionally, the Guarantor waives all rights to payments and claims for reimbursement or subrogation which such Guarantor might have against Maker arising as a result of the execution of and performance under this Guaranty. They also waive any and all other notices and legal or equitable defenses to which such Guarantor might be entitled.
In essence, these waivers mean that Bumper Man can pursue the Guarantor directly without first pursuing the Maker (the primary borrower) or providing extensive notices. This places a significant responsibility on the Guarantor, as they are agreeing to be fully liable for the debt and obligations of the Maker under the Promissory Note. A prospective franchisee acting as a Guarantor should fully understand these waivers and the potential financial implications before signing the Guaranty agreement.