Does the Guarantor's liability for an Amorino franchise extend to amendments or modifications of the Franchise Agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor hereby consents and agrees that:
- (e)this Guaranty will continue in full force and effect for (and as to) any extension or modification of the Agreement and despite the transfer of any interest in the Agreement or Franchisee, and
- (f) each Guarantor waives notice of any and all renewals, extensions, modifications, amendments, or transfers;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the Guarantor's liability extends to any extensions or modifications of the Franchise Agreement. The Guaranty remains in full effect despite any transfer of interest in the agreement or the franchisee. The guarantor also waives notice of any renewals, extensions, modifications, amendments, or transfers.
This means that anyone who guarantees the franchisee's obligations is bound by the original agreement and any changes made to it during its term. This protects Amorino in case the franchisee's business changes hands or the agreement is altered, ensuring that there is always a responsible party backing the financial and operational commitments.
For a prospective franchisee, this highlights the importance of carefully considering who will act as a guarantor, as that person's financial obligations will continue even if the franchise agreement is modified or the business is transferred. The guarantor should be fully aware of the terms of the franchise agreement and any potential future changes.