Does the guarantor for a Dryject franchise waive the right to notice of default by the franchisee?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
Upon receipt by Franchisor of notice of the death of Guarantor, the estate of deceased Guarantor shall be bound by the foregoing Guaranty Agreement, but only for defaults and obligations under the Franchise Agreement existing at the time of death; the obligations of all other guarantors shall continue in full force and effect;
This Guaranty Agreement will continue and is irrevocable during the Term of the Franchise Agreement and, if required by the Franchise Agreement, after its termination or expiration;
Guarantor's obligations under this Guaranty Agreement are effective on the Effective Date of the Franchise Agreement, regardless of the actual date of signature;
This Guaranty Agreement is governed by the laws of the state in which Our principal place of business is located, which is currently Hatboro, Pennsylvania and Guarantor irrevocably submits to the jurisdiction and venue of the courts of Pennsylvania;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the guarantor does waive certain rights. Specifically, the guarantor waives all demands and notices regarding the enforcement of the Guaranty Agreement. This includes, without limitation, 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.
This waiver means that Dryject is not obligated to inform the guarantor of any defaults or payment demands made to the franchisee before pursuing action against the guarantor. The guarantor is essentially agreeing to be held responsible for the franchisee's obligations without necessarily receiving prior notice of any issues. This could put the guarantor at a disadvantage, as they may not have the opportunity to intervene or rectify the situation before Dryject takes action.
Dryject can pursue its rights against any guarantor without first exhausting its remedies against the franchisee. Furthermore, any delay on Dryject's part in exercising any right or remedy does not operate as a waiver of such right or remedy. This clause is designed to protect Dryject's interests and ensure that they can take swift action against the guarantor if the franchisee defaults. The obligations of the guarantor are effective on the effective date of the Franchise Agreement, regardless of the actual date of signature, and continue during the term of the Franchise Agreement and after its termination or expiration if required by the Franchise Agreement.
This arrangement is common in franchising, as it provides the franchisor with an additional layer of security. However, it's crucial for potential guarantors to fully understand the implications of this waiver and seek legal counsel before signing the Guaranty Agreement. The guarantor's obligations are governed by the laws of the state in which Dryject's principal place of business is located, which is currently Hatboro, Pennsylvania, and the guarantor irrevocably submits to the jurisdiction and venue of the courts of Pennsylvania.