In the Monicals Pizza Unlimited Guaranty, what does the Guarantor waive regarding notice or demand?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantor agrees that (1) its obligations hereunder shall be enforceable against Guarantor without the necessity for any suit or proceedings whatsoever against Franchisee, and without the necessity of any notice of nonpayment, nonperformance or nonobservance or any notice of acceptance of this Guaranty Agreement or any other notice or demand to which Guarantor might otherwise be entitled, all of which Guarantor hereby expressly waives; (2) immediately upon each and every breach or default of the Franchise Agreement or any Related Agreement by Franchisee, whether before or during the term of the Franchise Agreement or any Related Agreement or thereafter (e.g., during any renewal term), without any notice to or demand upon Guarantor, Guarantor will (i) pay to Franchisor or an Affiliate as applicable, the sum or sums in arrears, (ii) pay to Franchisor or an Affiliate, as applicable, all damages, including but not limited to any expenses, costs and fees incurred by Franchisor or an Affiliate, as applicable,, that may be occasioned by Franchisee's nonperformance, and (iii) comply with or perform all terms and conditions of the Franchise Agreement and each Related Agreement; (3) no extension, forbearance or leniency extended by Franchisor or any Affiliate to Franchisee shall wholly or partially discharge Guarantor hereunder, notwithstanding that Guarantor had no notice of any breach or default of the Franchise Agreement or any Related Agreement or of any such leniency, forbearance or extension; (4) Franchisor or an Affiliate, as applicable, and Franchisee, without notice to or consent by Guarantor, may at any time(s) enter into modifications, renewals, extensions, amendments and/or other agreements respecting the Franchise Agreement or any Related Agreement, and Guarantor shall not be wholly or partially released thereby, it being intended that Guarantor shall continue as guarantor with respect to the Franchise Agreement and each Related Agreement as so modified, renewed, extended, amended or otherwise affected and notwithstanding any transfer or assignment of the Franchise Agreement or any Related Agreement.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the guarantor waives certain rights to notice or demand related to the franchisee's obligations. Specifically, the guarantor agrees that Monicals Pizza can enforce the guaranty without needing to sue or take action against the franchisee first.
The guarantor also waives their right to receive any notice of nonpayment, nonperformance, or nonobservance by the franchisee. This means Monicals Pizza doesn't have to inform the guarantor if the franchisee fails to meet their obligations under the Franchise Agreement or any related agreements. The guarantor also waives any right to receive notice of Monicals Pizza's acceptance of the Guaranty Agreement or any other notice or demand they might otherwise be entitled to.
This waiver has significant implications for the guarantor, as they become immediately liable for the franchisee's debts and obligations without necessarily being informed of any issues beforehand. The guarantor is responsible for paying any overdue amounts, covering all damages caused by the franchisee's nonperformance, and ensuring all terms and conditions of the Franchise Agreement are met. Furthermore, the guarantor remains bound even if Monicals Pizza grants extensions or leniency to the franchisee without notifying the guarantor, and even if the Franchise Agreement is modified or transferred.