What rights does the Guarantor waive under the Clean Your Dirty Face Guaranty?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned waives: (1) acceptance and notice of acceptance by Franchisor of the foregoing undertakings; (2) notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed; (3) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations guaranteed; (4) any right he or she may have to require that an action be brought against Franchisee or any other person as a condition of liability. Each of the undersigned consents and agrees that: (1) his or her direct and immediate liability under this Guaranty shall be joint and several; (2) he or she shall render any payment or performance required under the Agreement on demand if Franchisee fails or refuses punctually to do so; (3) liability shall not be contingent or conditioned on pursuit by Franchisor of any remedies against Franchisee or any other person; (4) liability shall not be diminished, relieved or affected by any extension of time, credit or other indulgence which Franchisor may grant to Franchisee or to any other person, including the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this Guaranty, which shall be continuing and irrevocable during the term of the Agreement; (5) Guarantor is bound by the restrictive covenants, confidentiality provisions, and indemnification provisions contained in the Agreement; and (5) at our request, Guarantor provides the updated financial information to us as may be reasonably necessary to demonstrate his or her ability to satisfy the obligations of the franchise owners under the Agreement.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the guarantor waives several rights to provide assurance that the franchisee's obligations are met. Specifically, the guarantor waives the right to receive acceptance and notice of acceptance from Clean Your Dirty Face regarding the guarantor's undertakings. They also waive the right to receive notice of demand for payment related to any guaranteed debt or nonperformance, as well as protest and notice of default concerning the guaranteed obligations. Furthermore, the guarantor gives up any right to demand that Clean Your Dirty Face first take action against the franchisee or any other person before pursuing the guarantor. This means Clean Your Dirty Face can seek payment directly from the guarantor without initially pursuing the franchisee.
The guarantor also consents to several conditions. Their liability is direct, immediate, joint, and several, meaning Clean Your Dirty Face can pursue the guarantor directly and for the full amount owed, alongside the franchisee. The guarantor must fulfill any payment or performance obligations under the agreement immediately if the franchisee fails to do so. The guarantor's liability is not contingent on Clean Your Dirty Face pursuing remedies against the franchisee or any other party.
Moreover, the guarantor's liability will not be affected by any extensions of time, credit, or other allowances Clean Your Dirty Face grants to the franchisee, including accepting partial payments or compromising claims. These actions do not modify the guaranty, which remains continuous and irrevocable during the term of the agreement. The guarantor is also bound by the restrictive covenants, confidentiality provisions, and indemnification provisions outlined in the franchise agreement. Finally, the guarantor agrees to provide updated financial information to Clean Your Dirty Face upon request to demonstrate their ability to meet the franchisee's obligations.
In practical terms, these waivers and consents mean the guarantor takes on a significant responsibility to ensure the franchisee meets their obligations to Clean Your Dirty Face. The guarantor cannot delay or avoid payment by demanding Clean Your Dirty Face first pursue the franchisee, and their obligations remain even if the franchisee faces bankruptcy or other financial difficulties. Prospective franchisees should ensure their guarantors fully understand these obligations before signing the guaranty.