Can the Guarantor waive any statute of limitations affecting the Stretch Zone agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The Guarantor waives the benefit of any circumstance, defense or statute of limitations affecting
her/his liability that might otherwise discharge a guarantor or hinder prompt enforcement of this Guaranty.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Guarantor can waive the benefit of any statute of limitations that might affect their liability. This waiver is part of the terms outlined in the Guaranty, which is designed to ensure the Franchisor is protected.
Specifically, the Guarantor's obligations are absolute and unconditional, regardless of the validity or enforceability of the Agreements. This means the Guarantor remains liable until all Guaranteed Obligations are fully satisfied and all amounts due are paid to Stretch Zone or its affiliates. The Guarantor also waives any requirement that Stretch Zone must first pursue the Developer or any collateral before seeking payment from the Guarantor.
This waiver is significant because it streamlines the process for Stretch Zone to recover any outstanding debts or obligations. By waiving the statute of limitations, the Guarantor essentially agrees that Stretch Zone can pursue legal action to enforce the Guaranty at any time, without being restricted by time limits that might otherwise apply. Prospective franchisees should carefully consider the implications of this waiver and seek legal counsel to fully understand their obligations and potential liabilities under the Guaranty.