What does the Guarantor waive regarding Crave Cookies Franchising's acceptance of the Guaranty?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantor waives (a) acceptance and notice of acceptance by Crave Cookies 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 Crave Cookies Franchising make demand upon, assert claims against or collect from Franchisee or any other person or entity (including any other guarantor), foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any other person or entity (including any other guarantor) prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guaranty; and (g) any and all other notices and legal or equitable defenses to which Guarantor may be entitled.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the Guarantor, in essence, agrees to be fully responsible for the franchisee's obligations without requiring Crave Cookies to first seek fulfillment from the franchisee. This means the guarantor is giving up certain rights and defenses they might otherwise have.
Specifically, the Guarantor waives the right to receive formal acceptance and notification from Crave Cookies regarding the Guaranty. They also waive the right to be notified of any demands for payment or instances where the franchisee fails to meet their obligations. The guarantor relinquishes the right to demand that Crave Cookies first pursue action against the franchisee or any other party before seeking recourse from the guarantor. Furthermore, the guarantor gives up any rights to payments, claims for reimbursement, or subrogation against the franchisee that might arise from their obligations under the Guaranty.
This waiver extends to any legal requirements that would compel Crave Cookies to first make demands, assert claims, collect from the franchisee, foreclose on security interests, sell collateral, or exhaust other remedies before pursuing the guarantor. Finally, the guarantor waives any and all other notices and legal or equitable defenses they might otherwise be entitled to. This comprehensive waiver ensures that Crave Cookies can directly and immediately seek fulfillment of the franchisee's obligations from the guarantor without procedural delays or legal challenges, providing Crave Cookies with a more secure position.