Under the Carbones Pizzeria Guaranty, what recourse against the Franchisee is waived by the guarantor?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the guarantor waives any and all notice of default on the part of the franchisee. The guarantor also waives the exhausting of recourse against the franchisee. This means that Carbones Pizzeria can immediately pursue the guarantor without first attempting to recover from the franchisee directly.

This waiver is significant because it streamlines the process for Carbones Pizzeria to recover any costs or fees owed by the franchisee in case of default. Typically, a creditor would need to first exhaust all legal and practical avenues to collect from the primary debtor (the franchisee) before pursuing the guarantor. However, under this clause, Carbones Pizzeria is not obligated to do so.

For a prospective Carbones Pizzeria franchisee, this highlights the importance of carefully considering who will act as a guarantor and ensuring they fully understand the extent of their obligations and potential liabilities. The guarantor should be financially prepared to cover the franchisee's debts and obligations to Carbones Pizzeria, as they can be pursued directly and immediately upon the franchisee's default.