What legal defenses does a Chicken Guy Guarantor waive?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned waives: (a) acceptance and notice of acceptance by Chicken Guy of the foregoing undertakings; (b) notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed; (c) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any right he may have to require that an action be brought against Franchisee or any other person as a condition of liability; (e) 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; (f) any law or statute which requires that Chicken Guy 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; (g) any and all other notices and legal or equitable defenses to which he may be entitled; and (h) any and all right to have any legal action under this Guarantee decided by a jury.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, a guarantor waives several rights and defenses related to the guaranteed obligations. These waivers are designed to streamline the process for Chicken Guy to seek recourse in case of franchisee default.
Specifically, the guarantor waives the right to receive acceptance and notice of acceptance from Chicken Guy regarding the guarantee. They also waive the right to be notified of demands for payment or nonperformance of obligations, as well as protest and notice of default. Furthermore, the guarantor relinquishes any right to require Chicken Guy to first pursue action against the franchisee or any other party before seeking recourse from the guarantor. The guarantor also waives their rights to payments, claims for reimbursement, or subrogation against the franchisee that may arise from their obligations under the guarantee.
In addition, the guarantor waives any legal protections that would require Chicken Guy to first demand payment from, assert claims against, collect from the franchisee, foreclose on security interests, sell collateral, or exhaust other remedies before pursuing action against the guarantor. The guarantor also waives any other legal or equitable defenses they might have, including the right to a jury trial in any legal action related to the guarantee. These waivers collectively mean that Chicken Guy has broad latitude to pursue the guarantor directly and immediately in the event of a default by the franchisee, without having to exhaust other avenues of recovery first.