What notices and demands are waived by the undersigned in the Gold Star Personal Guaranty?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned expressly waive(s) any and all notices and demands. This Personal Guaranty will not be affected by the modification, extension, or renewal of any agreement between Franchisor and Company, the taking of a note or other obligation from Company or others, the taking of security for payment, the granting of extension(s) of time for payment, the filing by or against Company of bankruptcy, insolvency, reorganization or other debtor's relief afforded Company pursuant to the present or future provision of the Federal Bankruptcy Act or any other state or federal statute or by the decision of any court, or any other matter, whether similar or dissimilar to any of the foregoing; and this Personal Guaranty will cover the terms and obligations of any such modifications, notes, security agreements, extensions, or renewals. The obligations of the undersigned will be unconditional, notwithstanding any defect in the genuineness, validity, regularity, or enforceability of the Company's obligations or liability to Franchisor, or any other circumstances whether or not referred to herein, which might otherwise constitute a legal or equitable discharge of a surety or guarantor.
This is a continuing, irrevocable, unconditional and absolute guaranty of payment and performance and the undersigned agree(s) that the undersigned's liability on this Personal Guaranty will be immediate and is not contingent upon the exercise or enforcement by Franchisor of whatever remedies it may have against Company or others, or the enforcement of any lien or realization upon any security Franchisor may at any time possess.
The undersigned further covenant(s) and agree(s) that as long as Company owes any monies to Franchisor (other than royalty and advertising fee payments that are not past due), Company will not pay, and the undersigned will not accept, payment of any part of any indebtedness owed by Company to the undersigned, or any one of the undersigned if more than one person, either directly or indirectly, without the consent of Franchisor.
If more than one individual executes this Personal Guaranty, each person executing this Personal Guaranty will be jointly and severally liable for the obligations created herein.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the personal guaranty requires the undersigned to expressly waive all notices and demands. This waiver means that the guarantor will not be entitled to receive any specific notifications or demands from Gold Star regarding the obligations of the company (the franchisee entity).
Specifically, the personal guaranty will not be affected by any modifications, extensions, or renewals of agreements between Gold Star and the franchisee company. It also covers situations where Gold Star takes a note or other obligation from the company, takes security for payment, grants extensions of time for payment, or if the company files for bankruptcy or any other form of debtor's relief. The guaranty remains in effect regardless of these events and will cover the terms and obligations of any modifications, notes, security agreements, extensions, or renewals.
The obligations of the guarantor are unconditional, meaning they are not contingent upon the validity or enforceability of the company's obligations to Gold Star. The guarantor's liability is immediate and not dependent on Gold Star first pursuing remedies against the company or enforcing any liens or security. This is a continuing, irrevocable, unconditional, and absolute guaranty of payment and performance.
Furthermore, as long as the company owes money to Gold Star (excluding current royalty and advertising fee payments), the company cannot pay, and the guarantor cannot accept, any repayment of indebtedness owed by the company to the guarantor without Gold Star's consent. If multiple individuals sign the Personal Guaranty, they are jointly and severally liable for all obligations. This comprehensive waiver and the unconditional nature of the guaranty highlight the significant financial commitment and risk undertaken by the guarantor.