Under the Stretch Zone Guaranty, what notices does the Guarantor waive?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Waiver. The Guarantor irrevocably waives notice of the extension of any Guaranteed Obligation, or of the acceptance of this Guaranty, and protest, presentment, diligence, demand for payment, notice of default, nonpayment or dishonor of any Guaranteed Obligation, and any other notice except as expressly provided in 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, under the Guaranty agreement, waives certain notices related to the guaranteed obligations. Specifically, the Guarantor waives notice of the extension of any Guaranteed Obligation and notice of the acceptance of the Guaranty itself.
Additionally, the Guarantor waives rights to protest, presentment, diligence, and demand for payment. The Guarantor also waives notice of default, nonpayment, or dishonor of any Guaranteed Obligation. This means that Stretch Zone is not required to notify the Guarantor if the franchisee is granted an extension on their obligations, or if the franchisee defaults on payments.
However, this waiver does not extend to notices that are expressly provided for within the Guaranty agreement itself, meaning that if the Guaranty agreement specifies that a certain type of notice must be given, then Stretch Zone is still obligated to provide that notice. This ensures that while the Guarantor waives many common notifications, they are still entitled to any notices specifically outlined in the Guaranty agreement.