What does the guarantor of the Face Foundrie Area Development Agreement waive notice of?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon demand by Franchisor, the undersigned hereby agrees to immediately make each payment required of Area Developer under the Agreement and waive any right to require Franchisor to: (a) proceed against Area Developer for any payment required under the Agreement; (b) proceed against or exhaust any security from Area Developer; (c) pursue or exhaust any remedy, including any legal or equitable relief, against Area Developer; or (d) give notice of demand for payment by Area Developer. Without affecting the obligations of the undersigned under this Guaranty, Franchisor may, without notice to the undersigned, extend, modify, or release any indebtedness or obligation of Area Developer, or settle, adjust, or compromise any claims against Area Developer, and the undersigned hereby waives notice of same and agrees to remain and be bound by any and all such amendments and changes to the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the guarantor of the Area Development Agreement waives the right to receive notice regarding certain actions Face Foundrie might take related to the Area Developer's obligations.
Specifically, the guarantor agrees that Face Foundrie can extend, modify, or release any debt or obligation of the Area Developer without notifying the guarantor. Face Foundrie can also settle, adjust, or compromise any claims against the Area Developer without informing the guarantor. By signing the guaranty, the guarantor agrees to remain bound by any changes made to the Area Development Agreement, even without prior notice.
This waiver is significant because it means the guarantor's obligations can change without their direct knowledge or consent. The guarantor remains liable even if Face Foundrie alters the terms of the agreement with the Area Developer. This clause protects Face Foundrie by allowing them flexibility in managing the relationship with the Area Developer without needing to seek additional approvals from the guarantor for every modification.
Prospective Face Foundrie area developers should carefully consider the implications of this waiver for any individual acting as a guarantor. They should seek legal counsel to fully understand the extent of the guarantor's obligations and the potential risks involved before signing the Area Development Agreement and associated guaranty.