What other notices and defenses are waived by the Guarantor under the Fly To Fit Guaranty?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor waives (a) acceptance and notice of acceptance by Fly To Fit Franchise of this Guaranty; (b) notice of demand for payment of any indebtedness or nonperformance of any obligations of Franchisee; (c) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any right Guarantor may have to require that an action be brought against Franchisee or any other person or entity as a condition of liability hereunder; (e) all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the execution of and performance under this Guaranty by the undersigned; (f) any law which requires that Fly To Fit Franchise make demand upon, assert claims against or collect from Franchisee or any other person or entity (including any other guarantor), foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any other person or entity (including any other guarantor) prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guaranty; and (g) any and all other notices and legal or equitable defenses to which Guarantor may be entitled.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Guarantor waives several rights and notices related to the Franchise Agreement. Specifically, the Guarantor waives "any and all other notices and legal or equitable defenses to which Guarantor may be entitled." This broad waiver means the Guarantor gives up nearly all possible legal protections they might otherwise have.
This waiver has significant implications for anyone acting as a Guarantor for a Fly To Fit franchise. By signing the Guaranty, the Guarantor agrees to be fully responsible for the franchisee's obligations, even if circumstances change or the franchisee has defenses against Fly To Fit. The Guarantor cannot claim they were unaware of the franchisee's financial difficulties or argue that Fly To Fit should have taken action against the franchisee first.
This type of broad waiver is not uncommon in franchise agreements, as franchisors seek to ensure they have recourse against a responsible party if the franchisee defaults. However, potential Guarantors should carefully consider the risks before signing such an agreement, as they are essentially stepping into the shoes of the franchisee and accepting full liability for their debts and obligations to Fly To Fit.