What specific rights do the Guarantors waive concerning the Gokhale Method Franchisee's obligations?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon demand by Franchisor, the Guarantors will immediately make each payment to Franchisor required of Franchisee under the Agreement. The Guarantors hereby waive any right to require Franchisor to: (a) proceed against Franchisee for any payment required under the Agreement; (b) proceed against or exhaust any security from Franchisee; or (c) pursue or exhaust any remedy, including any legal or equitable relief, against Franchisee. Without affecting the obligations of the Guarantors under this Guarantee, Franchisor may, without notice to the Guarantors, extend, modify, or release any indebtedness or obligation of Franchisee, or settle, adjust, or compromise any claims against Franchisee. The Guarantors waive notice of amendment of the Agreement and notice of demand for payment by Franchisee, and agree to be bound by any and all such amendments and changes to the Agreement.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the Guarantors, who guarantee the franchisee's obligations, waive specific rights that could protect them from liability. This waiver is part of the Guarantee, Indemnification, and Acknowledgment section of the franchise agreement.
Specifically, the Guarantors waive the right to require Gokhale Method to first pursue the franchisee for any payments or performance required under the Franchise Agreement. They also waive the right to demand that Gokhale Method act against or seek security from the franchisee before pursuing the Guarantors. Furthermore, the Guarantors relinquish their right to insist that Gokhale Method pursue any legal or equitable remedies against the franchisee before seeking recourse from the Guarantors.
Additionally, Gokhale Method can modify or release the franchisee from any debt or obligation without notifying the Guarantors, and the Guarantors still remain bound by the guarantee. The Guarantors also waive notice of any amendments to the Franchise Agreement or any demand for payment from the franchisee, agreeing to be bound by any changes to the agreement. This means the Guarantors' obligations can change without their direct knowledge or consent, increasing their potential liability.