What does the guarantor waive regarding protest and notice of default under the Hydrodog Guaranty?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Waivers.
Each of you waives: (a) acceptance and notice of acceptance by us of your obligations under this Guaranty; (b) notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed by you; (c) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations guaranteed by you; (d) any right you may have to require that an action be brought against the Business Entity or any other person as a condition of your liability; (e) all rights to payments and claims for reimbursement or subrogation which you may have against the Business Entity arising as a result of your execution of and performance under this Guaranty; and (f) all other notices and legal or equitable defenses to which you may be entitled in your capacity as guarantors.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the guarantor waives certain rights related to the Hydrodog Guaranty. Specifically, the guarantor waives protest and notice of default to any party regarding the guaranteed indebtedness or nonperformance of obligations. This means that Hydrodog is not obligated to formally protest or notify the guarantor of any default by the franchisee.
This waiver has significant implications for anyone acting as a guarantor for a Hydrodog franchise. By signing the guaranty, the individual gives up the right to receive formal notification if the franchisee fails to meet their financial or contractual obligations. This lack of notification could prevent the guarantor from taking timely action to mitigate potential losses or address the franchisee's default.
In essence, the guarantor is agreeing to be fully responsible for the franchisee's obligations without the benefit of standard legal protections, such as the right to receive notice of default. Prospective guarantors should carefully consider the risks associated with this broad waiver and seek legal counsel to fully understand their obligations under the Hydrodog Guaranty.