Can the Dryject franchisor waive any obligation of the franchisee without notifying the guarantor?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Without affecting the obligations of any guarantor under this Guaranty Agreement, Franchisor may, without notice to Guarantor, waive, renew, extend, modify, amend or release any indebtedness or obligation of Franchisee or any guarantor, or settle,
make each payment and perform each obligation required of Franchisee under the
Franchise Agreement;
adjust or compromise any claims against Franchisee or any guarantor;
Guarantor waives all demands and notices of every kind with respect to enforcement of this Guaranty Agreement, including, without limitation, notice of presentment, demand for payment or performance by Franchisee, any default by Franchisee or any guarantor, and any release of any guarantor or other security for the Franchise Agreement or the obligations of Franchisee;
Franchisor may pursue its rights against any guarantor without first exhausting its remedies against Franchisee and without joining any other guarantor hereto and no delay on the part of Franchisor in the exercise of any right or remedy shall operate as a waiver of such right or remedy, and no single or partial exercise of such right or remedy shall preclude the further exercise of such right or remedy;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject can waive a franchisee's obligations without notifying the guarantor. The Guaranty Agreement states that Dryject may waive, renew, extend, modify, amend, or release any debt or obligation of the franchisee or any guarantor without notifying the guarantor. This also includes settling or adjusting any claims against the franchisee or any guarantor.
This means that if a franchisee has a guarantor for their financial obligations to Dryject, Dryject is not required to inform the guarantor if they decide to change the terms of the franchisee's debt or obligations. This could potentially increase the guarantor's risk, as they may be responsible for a larger or modified debt without their knowledge.
The guarantor also waives all demands and notices of every kind with respect to enforcement of the Guaranty Agreement. This includes notice of presentment, demand for payment or performance by the franchisee, any default by the franchisee or any guarantor, and any release of any guarantor or other security for the Franchise Agreement or the obligations of the franchisee. Dryject can pursue its rights against any guarantor without first exhausting its remedies against the franchisee and without joining any other guarantor.
This clause in the Guaranty Agreement is significant for potential Dryject franchisees who require a guarantor, as it places a considerable burden on the guarantor. The guarantor should be fully aware of the implications of this clause before signing the agreement, as they could be held responsible for the franchisee's obligations without prior notice of any changes or defaults.