What notices does the Guarantor waive in the Chocolate Bash Guaranty and Non-Compete Agreement?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor agrees as follows:
- **1.
Guaranty.** Guarantor hereby unconditionally guarantees to CB Franchising and its successors and assigns that Franchisee shall pay and perform every undertaking, agreement and covenant set forth in the Franchise Agreement and further guarantees every other liability and obligation of Franchisee to CB Franchising, whether or not contained in the Franchise Agreement.
Guarantor shall render any payment or performance required under the Franchise Agreement or any other agreement between Franchisee and CB Franchising upon demand from CB Franchising.
Guarantor waives (a) acceptance and notice of acceptance by CB Franchising of this Guaranty; (b) notice of demand for payment of any indebtedness or nonperformance of any obligations of Franchisee; (c) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any right Guarantor may have to require that an action be brought against Franchisee or any other person or entity as a condition of liability hereunder; (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 Guaranty by the undersigned; (f) any law which requires that CB Franchising make demand upon, as
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the Guarantor, in the Guaranty and Non-Compete Agreement, waives several notices related to the franchisee's obligations and potential defaults. Specifically, the guarantor waives the right to receive acceptance and notice of acceptance of the Guaranty by Chocolate Bash. This means the guarantor is bound by the agreement regardless of whether they receive explicit confirmation of its acceptance from Chocolate Bash.
Additionally, the guarantor waives the right to be notified of any demand for payment of indebtedness or nonperformance of obligations by the franchisee. They also waive the right to protest and receive notice of default concerning any guaranteed obligations. This implies that Chocolate Bash can pursue the guarantor directly for the franchisee's debts or failures without first formally notifying the guarantor or allowing them to contest the default.
Furthermore, the guarantor gives up any right to require Chocolate Bash to first take action against the franchisee or any other person or entity before pursuing the guarantor. The guarantor also waives all rights to payments and claims for reimbursement or subrogation against the franchisee that may arise from their obligations under the Guaranty. Finally, the guarantor waives any legal protections that would require Chocolate Bash to first demand payment from, or attempt to collect from, the franchisee or any other party before seeking recourse from the guarantor.