What rights does the Principal waive regarding actions against the Franchisee for a Bumper Man franchise?
Bumper_Man 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 its liability under this Guaranty will not be contingent or conditioned upon Franchisor pursuing any remedies against Franchisee or any other Person. Principal waives any right it may have to require that Franchisor bring an action against Franchisee or any other Person as a condition of its liability. Principal further waives protest and notice of Franchisee's default or nonperformance of any obligation that is guaranteed by Principal or notice of demand for payment issued by Franchisor, 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 concession 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.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the Principal of a franchisee waives several rights to protect the franchisor. The Principal agrees to be personally bound by and liable for any breaches of the Franchise Agreement, including monetary obligations or specific actions required or prohibited. This means the Principal's personal assets are at risk if the franchisee fails to meet their obligations.
The Principal consents to fulfill any payment or performance required under the agreement if the franchisee fails to do so, upon demand from Bumper Man. The Principal's liability is not contingent on Bumper Man pursuing remedies against the franchisee first. The Principal waives the right to demand that Bumper Man take action against the franchisee or any other party before seeking recourse from the Principal.
Furthermore, the Principal waives protest and notice of the franchisee's default or nonperformance, as well as any notice of demand for payment issued by Bumper Man. They also waive any legal or equitable defenses they might have as a guarantor. The Principal's liability will not be affected by any extensions of time, credit, or other concessions Bumper Man may grant to the franchisee. Finally, the Principal waives all rights to payments and claims for reimbursement or subrogation against the franchisee arising from their performance under the Guaranty.