What rights does the undersigned waive regarding actions against the Developer in the Floyds 99 Guaranty?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned waives the following:
- Acceptance and notice of acceptance by Franchisor and its affiliates of the foregoing undertakings;
- Notice of demand for payment of any indebtedness or nonperformance 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;
- Any right he or she may have to require that any action be brought against Developer or any other person as a condition of liability; and
- Any and all other notices and legal or equitable defenses to which he or she may be entitled.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, the guarantor waives several rights related to the Developer's obligations. These waivers are part of the Guaranty and Assumption of Developer's Obligations, where the guarantor ensures the Developer fulfills all agreements with Floyds 99 Franchising, LLC.
Specifically, the guarantor waives the right to receive acceptance and notice of acceptance from Floyds 99 Franchising, LLC, and its affiliates regarding the guarantor's undertakings. They also waive the right to be notified of any demands for payment or nonperformance by the Developer, as well as the right to protest any default. Furthermore, the guarantor waives the right to require Floyds 99 to first take action against the Developer or any other person before pursuing the guarantor. Finally, the guarantor waives any other notices and legal or equitable defenses they might otherwise be entitled to.
In practical terms, this means that if the Developer fails to meet their obligations under the Development Agreement, Floyds 99 can immediately seek recourse from the guarantor without having to first pursue the Developer. The guarantor is essentially giving up certain legal protections and rights they would normally have in a typical guarantee situation. This arrangement is designed to provide Floyds 99 with a more direct and efficient means of ensuring compliance with the Development Agreement.
Prospective franchisees acting as guarantors should carefully consider the implications of these waivers, as they significantly increase their potential liability. It is advisable to seek legal counsel to fully understand the extent of these obligations before signing the Guaranty and Assumption of Developer's Obligations.