Can the All County Guaranty be modified or amended by accepting partial payment from the franchisee?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4. such liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which we may from time to time grant to Franchisee or to any other person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the Term of the Agreement and thereafter.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Guaranty is not modified or amended by accepting partial payment from the franchisee. The Guaranty will remain continuing and irrevocable during the term of the agreement and thereafter.
Specifically, the guarantor's liability will not be contingent upon All County pursuing remedies against the franchisee or any other person. Furthermore, the guarantor's liability will not be affected by any extensions of time, credit, or other allowances All County may grant to the franchisee or any other person. This includes accepting partial payments or compromising claims.
This clause protects All County by ensuring that the Guaranty remains in full effect regardless of any leniency they might extend to the franchisee. It also clarifies that the Guaranty remains in place even after the franchise agreement's term, meaning the guarantor's obligations can extend beyond the active franchise period.