What does each undersigned guarantor waive regarding acceptance by CJR of the undertakings in the Carls agreement?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. Each of the undersigned waives: (1) acceptance and notice of acceptance by CJR 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 he may have to require that an action be brought against Franchisee or any other person as a condition of liability; (5) 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 execution of and performance under this Guarantee by the undersigned; (6) any law or statute which requires that CJR make demand upon, assert claims against or collect from Franchisee or any others, foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any others prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guarantee; (7) any and all other notices and legal or equitable defenses to which he may be entitled; and (8) any and all right to have any legal action under this Guarantee decided by a jury.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 Carls FDD, each undersigned guarantor waives several rights and notices related to the guarantee of the franchisee's obligations. Specifically, they waive acceptance and notice of acceptance by CJR (Carl's Jr. Restaurants LLC) of the undertakings. This means the guarantors will not receive formal notification that CJR accepts their guarantee.
Additionally, the guarantors waive notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed. This implies that CJR is not obligated to inform the guarantors about the franchisee's failure to pay or perform before seeking recourse from the guarantors themselves. The guarantors also waive protest and notice of default to any party regarding the guaranteed obligations, meaning they forgo any formal notification of default related to the indebtedness or nonperformance.
Furthermore, the guarantors waive any right to require CJR to first bring an action against the franchisee or any other person before pursuing the guarantors. They also relinquish all rights to payments and claims for reimbursement or subrogation against the franchisee arising from their performance under the guarantee. This means guarantors cannot seek compensation from the franchisee for payments made to CJR under the guarantee. Finally, the guarantors waive any law or statute requiring CJR to make a demand upon, assert claims against, or collect from the franchisee before taking action against the guarantors, along with any other notices and legal or equitable defenses and the right to a jury trial in any legal action under the guarantee.