Do Guarantors for City Wide franchises waive the right to notice of acceptance of the Guaranty?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 3. Waiver. Guarantors hereby waive promptness, diligence, notice of acceptance and any other notice with respect to any of the Obligations and this Guaranty and any requirement that CITY WIDE
protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against Franchisee or any other person or entity or any collateral.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, both general Guarantors and Spousal Guarantors waive the right to notice of acceptance of the Guaranty. Section 3 of the Guaranty agreement states that Guarantors waive notice of acceptance. This means that the Guarantors are bound by the terms of the guaranty immediately, without City Wide having to formally notify them that the guaranty is accepted.
This waiver is significant because it simplifies the process for City Wide and places the onus on the Guarantors to understand and accept their obligations from the outset. The waiver is part of a broader set of waivers, including promptness, diligence, and any other notice related to the obligations and the Guaranty. This indicates that City Wide aims to create a straightforward and unconditional guarantee to protect its interests under the Franchise Agreement.
For a prospective City Wide franchisee, this means that anyone acting as a Guarantor, especially a spouse, needs to fully understand the implications of the Guaranty. They are giving up certain rights, such as the right to be notified of the acceptance of the Guaranty, which could potentially affect their legal standing in the event of a dispute. It is advisable for potential Guarantors to seek independent legal counsel to fully understand the scope and implications of these waivers before signing the Guaranty agreement.