What rights does a Chicken Guy franchise Guarantor waive under the Guarantee?
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 Chicken Guy's 2025 Franchise Disclosure Document, a guarantor waives several rights to ensure the enforceability of the guarantee. These waivers are designed to streamline the process for Chicken Guy to seek recourse in case the franchisee defaults on their obligations.
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 any demands for payment or nonperformance of obligations, as well as any protest or notice of default. This means Chicken Guy doesn't have to formally notify the guarantor before taking action.
Furthermore, the guarantor waives the right to require Chicken Guy to first pursue action against the franchisee or any other party before seeking fulfillment of the guarantee. They also relinquish all rights to payments, claims for reimbursement, or subrogation against the franchisee arising from their obligations under the guarantee. The guarantor also waives any legal protections that would require Chicken Guy to make demands, assert claims, or collect from the franchisee before pursuing the guarantor. Finally, the guarantor 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.