What does each Guarantor waive regarding the Jersey Mikes Guaranty and Assumption of Obligations?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
luding actual attorneys' fees and expenses in the defense of any such action or suit.
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- THIS GUARANTY AND THE TRANSACTIONS EVIDENCED HEREBY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW JERSEY WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. THE FEDERAL AND STATE COURTS OF THE STATE OF NEW JERSEY SHALL HAVE SOLE AND EXCLUSIVE JURISDICTION OVER ANY DISPUTE ARISING FROM THIS GUARANTY.
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- The Guarantors waive notice of acceptance of this Guaranty and notice of any liability of Maker to which this Guara nty may apply and w aives notice of default, non-payment, pa rtial payment, presentment, demand, protest, notice of protest or dishonor and all other notices to w hich the Guarantors might otherwise be entitled except any notices expressly set forth herein, or which might be requ
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, the Guarantors waive certain notices related to the Guaranty and Assumption of Obligations. Specifically, they waive notice of acceptance of the Guaranty, notice of any liability of the Maker, notice of default, non-payment, partial payment, presentment, demand, protest, notice of protest or dishonor, and all other notices to which the Guarantors might otherwise be entitled, except for notices expressly set forth in the Guaranty or required by law. This means that Jersey Mikes is not obligated to inform the Guarantors of many routine or potential issues related to the Maker's obligations.
This waiver has significant implications for anyone acting as a Guarantor for a Jersey Mikes franchise. By waiving these notices, the Guarantor may not be promptly informed if the Maker (the franchisee) is failing to meet their financial obligations or is otherwise in default. This lack of timely notification could limit the Guarantor's ability to take corrective action or mitigate potential losses. The Guarantor remains liable for the obligations, but loses the opportunity to stay informed about the financial health and compliance of the franchise.
Furthermore, the Guaranty specifies that it is governed by the laws of New Jersey, and any disputes will be resolved in the federal and state courts of New Jersey. This clause dictates the legal framework and venue for any disputes related to the Guaranty, which may be inconvenient for Guarantors located outside of New Jersey. Prospective Guarantors should carefully consider these factors and seek legal counsel to fully understand the extent of their obligations and potential liabilities under the Guaranty and Assumption of Obligations.