Does the Kitchen Solvers guarantor have to be notified of default by the developer?

According to the 2025 Kitchen Solvers Franchise Disclosure Document, the guarantor waives the right to be notified of default by the developer. Specifically, the guarantor waives 'notice of default to any party with respect to the indebtedness or nonperformance of any obligations guaranteed'.

This waiver means that Kitchen Solvers is not obligated to inform the guarantor if the developer fails to meet their financial or performance obligations. The guarantor's liability becomes direct and immediate upon the developer's failure to perform, regardless of whether the guarantor receives notice. This arrangement allows Kitchen Solvers to take immediate action against the guarantor without delay caused by notification requirements.

For a prospective Kitchen Solvers franchisee acting as a guarantor, this clause carries significant risk. The guarantor could be held liable for the developer's debts or non-performance without prior warning or opportunity to rectify the situation. It is crucial for potential guarantors to fully understand the developer's financial situation and business plan before agreeing to the guarantee, as they are essentially assuming responsibility for the developer's obligations without the benefit of a notification period.

This type of waiver is not uncommon in franchise agreements where a guarantee is required, as it streamlines the process for the franchisor to recover debts or enforce performance. However, it places a substantial burden on the guarantor, who must be prepared to fulfill the developer's obligations at any time without prior notice.