What notice of any default or non-performance does each of the undersigned waive regarding the Carls Jr. agreement?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Developer 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 Developer 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 Developer or any others, foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Developer 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 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the undersigned, referring to the guarantor, waives several notices and rights related to the guaranteed obligations. Specifically, they waive acceptance and notice of acceptance by Carls Jr. of the undertakings, notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed, and protest and notice of default to any party concerning the guaranteed indebtedness or nonperformance.
This waiver also includes any right the guarantor may have to require that an action be brought against the Developer or any other person as a condition of liability. Furthermore, they waive all rights to payments and claims for reimbursement or subrogation against the Developer arising from their performance under the guarantee. The guarantor also waives any law or statute requiring Carls Jr. to make a demand upon, assert claims against, or collect from the Developer or others before taking action against the guarantor.
In essence, the guarantor is relinquishing several standard legal protections. This means that Carls Jr. can pursue the guarantor directly and immediately in case of any default or non-performance by the Developer, without first having to exhaust other remedies or provide specific notices. This places a significant responsibility on the guarantor, as they are essentially providing an unconditional guarantee of the Developer's obligations to Carls Jr.
Finally, the guarantor waives any and all other notices and legal or equitable defenses to which he may be entitled, and any and all right to have any legal action under this Guarantee decided by a jury. This comprehensive waiver underscores the seriousness of the guarantee and the extent to which the guarantor is committing to cover the Developer's obligations, which is a standard practice in franchising to ensure financial security for the franchisor.