What notices does the guarantor waive under the Potbelly Sandwich Works Guaranty?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned waives: (i) all rights to payments and claims for reimbursement or subrogation that any of the undersigned may have against Franchisee arising as a result of the undersigned's execution of and performance under this Guaranty, for the express purpose that none of the undersigned will be deemed a "creditor" of Franchisee under any applicable bankruptcy law with respect to Franchisee's obligations to us; and (ii) acceptance and notice of acceptance by us of his or her undertakings under this Guaranty, all presentments, demands, and notices of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed, protest, notices of dishonor, notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed, and any other notices and legal or equitable defenses to which he or she may be entitled.
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the guarantor waives several rights and notices to ensure the enforceability of the guaranty. Specifically, the guarantor waives acceptance and notice of acceptance by Potbelly Sandwich Works of their obligations under the Guaranty. This means the guarantor cannot claim they were unaware their guaranty was accepted.
Additionally, the guarantor waives all presentments, demands, and notices of demand for payment of any guaranteed debt or non-performance. This prevents the guarantor from requiring formal presentations of payment requests or claiming lack of awareness regarding payment demands. The guarantor also waives protest, notices of dishonor, and notices of default to any party concerning the guaranteed debt or nonperformance. This means Potbelly Sandwich Works doesn't have to provide the guarantor with formal notifications of dishonored payments or defaults by the franchisee.
Finally, the guarantor waives any other notices and legal or equitable defenses they might otherwise be entitled to. This broad waiver aims to eliminate potential legal challenges the guarantor could raise to avoid fulfilling their obligations under the guaranty. In essence, these waivers streamline the process for Potbelly Sandwich Works to enforce the guaranty should the franchisee default, reducing potential legal hurdles and ensuring quicker recourse to recover owed amounts.