Under the Cream Guaranty, what is the scope of the waiver regarding notice of demand for payment of any indebtedness or non-performance of any obligations?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor waives: (i) all rights to payments and claims for reimbursement or subrogation which any Guarantor may have against Franchise Owner arising as a result of the Guarantor's execution of and performance under this Guaranty; and (ii) acceptance and notice of acceptance by us of Guarantor's undertakings under this Guaranty, notice of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed, protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed, and any other notices to which he or she may be entitled.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Guarantor waives acceptance and notice of acceptance by Cream of Guarantor's undertakings under the Guaranty. The Guarantor also waives notice of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed.
Furthermore, the Guarantor waives protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed. The waiver extends to any other notices to which he or she may be entitled.
In practical terms, this means that if a franchisee fails to meet their financial obligations or otherwise defaults on the franchise agreement, Cream is not obligated to provide the Guarantor with any formal notice or demand for payment before pursuing legal action or other remedies under the Guaranty. This waiver simplifies and expedites Cream's ability to recover any losses from the Guarantor without the need for preliminary notifications.