What notices does the guarantor waive under the Burros Fries Franchise Agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
including but not limited to noncompetition, indemnity and non-disclosure provisions.
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- Each Guarantor has consulted legal counsel of his/her own choosing as to his/her responsibilities and liabilities under this Guaranty.
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- Each Guarantor waives:
- (a) Notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed;
- (b) Protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations guaranteed;
- (c) Any right he or she may have to require that an action be brought against Franchisee or any other person as a condition of liability;
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Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the guarantor waives certain notices related to the franchisee's obligations. Specifically, the guarantor waives notice of demand for payment of any debt or nonperformance of any guaranteed obligations. They also waive protest and notice of default to any party concerning the guaranteed debt or nonperformance.
Furthermore, the guarantor gives up any right to demand that Burros Fries first take action against the franchisee or any other person before seeking recourse from the guarantor. This means Burros Fries can pursue the guarantor directly without initially suing the franchisee.
In addition, the guarantor waives acceptance and notice of acceptance by Burros Fries, waives notice of demand, and waives protest and notice of default, except as may be required by the Franchise Agreement. This comprehensive waiver underscores the guarantor's commitment to ensuring the franchisee's obligations are met, regardless of whether they receive specific notices or demands. This waiver is a significant consideration for anyone acting as a guarantor, as it potentially increases their liability and reduces their ability to intervene or receive updates on the franchisee's performance.