What specific notices does the Guarantor waive under the Crave Cookies 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 the 2025 Crave Cookies FDD, the Guarantor, in signing the Guaranty, waives several rights and notices that would otherwise protect them. This means the Guarantor takes on a significant risk by guaranteeing the franchisee's obligations. Specifically, the Guarantor waives the right to receive acceptance and notice of acceptance of the Guaranty by Crave Cookies Franchising. This implies the Guarantor is bound by the agreement as soon as it's signed, regardless of whether Crave Cookies formally acknowledges it.
Furthermore, the Guarantor waives the right to receive notice of demand for payment of any debt or notice of nonperformance of any obligations by the franchisee. This means Crave Cookies can immediately seek payment or action from the Guarantor without first notifying them that the franchisee has defaulted. The Guarantor also waives protest and notice of default, meaning they won't be formally notified if the franchisee fails to meet their obligations. This lack of notification could leave the Guarantor unaware of escalating issues until Crave Cookies pursues them directly.
The Guarantor also gives up any right to require Crave Cookies to first sue the franchisee or any other party before pursuing the Guarantor. They also waive all rights to payments and claims for reimbursement or subrogation against the franchisee that might arise from their performance under the Guaranty. Additionally, the Guarantor waives any legal requirement that Crave Cookies first demand payment from, assert claims against, or take action against the franchisee or any other person before pursuing the Guarantor. Finally, the Guarantor waives any and all other notices and legal or equitable defenses they might otherwise be entitled to.
In essence, the Guarantor agrees to be fully and immediately liable for the franchisee's obligations without the usual protections of notification and recourse. This arrangement greatly favors Crave Cookies, as it streamlines their ability to collect on any debts or enforce obligations. A prospective franchisee should carefully consider the implications of this extensive waiver and ensure that any potential Guarantor fully understands the risks involved before signing the Guaranty.