Does a Guarantor receive notice of changes to the Burneys Sweets More Agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Each Guarantor waives: (1) notice of demand for payment of any indebtedness or on performance of any obligations hereby guaranteed; (2) protest and notice of default to any party respecting the indebtedness or nonperformance of any obligations hereby guaranteed; (3) any right he/she may have to require that an action be brought against the Franchisee or any other person as a condition of liability; (4) the defense of the statute of limitations in any action hereunder or for the collection of any indebtedness or the performance of any obligation hereby guaranteed; and (5) notice of any changes permitted by the terms of the Agreement or agreed to by the Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, a Guarantor will not receive notice of changes to the Burneys Sweets More Agreement. The guarantor waives the right to receive notice of any changes permitted by the terms of the agreement or agreed to by the franchisee.
This waiver means that the guarantor remains bound by their guarantee even if the terms of the franchise agreement are altered, potentially increasing their financial exposure without their direct knowledge or consent. This is a significant risk for the guarantor, as changes to the agreement could lead to increased financial obligations or other liabilities for the franchisee, which the guarantor would ultimately be responsible for if the franchisee defaults.
Prospective guarantors should carefully consider this waiver and understand the full scope of their potential liability before signing the guarantee. It would be prudent to seek legal counsel to fully understand the implications of waiving the right to notice of changes to the franchise agreement. This is not unusual in franchising, as franchisors want to ensure they can make necessary changes to the franchise system without needing to obtain consent from every guarantor.