What notices does the guarantor waive under the Fat Shack Development Agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Each of the undersigned waives the following:
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- Acceptance and notice of acceptance by FSI of the foregoing undertaking;
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- Notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed;
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- Protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed;
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- Any right he or she may have to require that any action be brought against Franchisee or any other person as a condition of liability; and
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- Notice of any amendment, modification, deletion or addition of any term or condition of or to any of the obligations hereby guaranteed.
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- Notice of any termination as to future liability of any other guarantor.
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- Any and all other notices and legal or equitable defenses to which he or she may be entitled.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the guarantor, in consideration of the execution of the Development Agreement, waives several notices. These waivers are part of the Guaranty and Assumption of Franchisee's Obligations exhibit attached to the Development Agreement.
Specifically, the guarantor waives acceptance and notice of acceptance by Fat Shack of the undertaking, notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed, and protest and notice of default to any party regarding the guaranteed indebtedness or nonperformance. The guarantor also waives any right to require that action be brought against the franchisee or any other person as a condition of liability.
Additionally, the guarantor waives notice of any amendment, modification, deletion, or addition to any term or condition of the guaranteed obligations, notice of any termination regarding the future liability of any other guarantor, and any and all other notices and legal or equitable defenses to which they may be entitled. This means the guarantor is essentially agreeing to be fully responsible for the franchisee's obligations without needing to be informed of every detail or change related to the Development Agreement.
This waiver is significant because it places a substantial responsibility on the guarantor. They are bound by the terms of the Development Agreement and any changes to it, without necessarily receiving direct notification. A prospective Fat Shack franchisee should ensure their guarantor fully understands these waivers and the potential financial and legal implications before signing the Development Agreement.