Under the Hck Hot Chicken Continuing Guaranty, what defenses does the guarantor waive?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
4.1 Without limiting the generality of any other provision of this Continuing Guaranty, Guarantor expressly waives: (i) notice of the acceptance by Franchisor of this Continuing Guaranty; (ii) notice of the existence, creation, payment, nonpayment, performance or non-performance of all or any of the Obligations; (iii) presentment, demand, notice of dishonor, protest, notice of protest and all other notices whatsoever with respect to the payment or performance of the Obligations or the amount thereofor any payment or performance by Guarantor under this Agreement; (iv) all diligence in collection or protection of or realization upon the Obligations or any thereof, any obligation under this Agreement or any security for or guaranty of any of the foregoing; (v) any right to direct or affect the manner or timing of Franchisor's enforcement of its rights or remedies; (vi) any and all defenses which would otherwise arise upon the occurrence of any event or contingency described in Paragraph 1 hereof or upon the taking of any action by Franchisor permitted under this Agreement; (vii) any defense, right of set-off, claim or counterclaim whatsoever and any and all other rights, benefits, protections and other defenses available to Guarantor now or at any time hereafter, including, without limitation, under any suretyship statute of the State of California; and (viii) all other principles or provisions of law, if any, that conflict with the terms of this Continuing Guaranty, including, without limitation, the effect of any circumstances that may or might constitute a legal or equitable discharge of a guarantor or surety.
4.2 Guarantor waives all rights and defenses arising out of an election of remedies by Franchisor.
4.3 Guarantor further waives all rights to revoke this Continuing Guaranty at any time, and all rights to revoke any agreement executed by Guarantor at any time to secure the payment and performance of Guarantor's obligations under this Continuing Guaranty.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Continuing Guaranty outlines specific waivers by the guarantor. The guarantor waives notice of acceptance of the guaranty by Hck Hot Chicken, as well as notice regarding the existence, creation, payment, nonpayment, performance, or non-performance of any obligations. This means the guarantor will not be informed of these events related to the franchisee's obligations.
The guarantor also waives presentment, demand, notice of dishonor, protest, and all other notices related to payments or performance of obligations. They waive diligence in the collection, protection, or realization of obligations, rights to direct the enforcement of Hck Hot Chicken's rights or remedies, and any defenses arising from events described in Paragraph 1 of the Guaranty or actions taken by Hck Hot Chicken. This indicates the guarantor has limited control over how Hck Hot Chicken manages the obligations and enforces its rights.
Furthermore, the guarantor waives any defense, right of set-off, claim, or counterclaim, including those available under suretyship statutes like those in California. They also waive all legal principles conflicting with the Continuing Guaranty's terms, including circumstances that might discharge a guarantor or surety. The guarantor waives rights and defenses related to Hck Hot Chicken's election of remedies and rights to revoke the Continuing Guaranty or any related security agreements. These waivers ensure the guarantor remains fully liable for the franchisee's obligations, even if certain legal defenses might otherwise apply.