What is the scope of the Guarantor's agreement to be personally bound by the Apricot Lane Franchise Agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Without affecting the obligations of the undersigned under this Guarantee, FRANCHISOR may, without notice to the undersigned, extend, modify, supplement, waive strict compliance with, or release all or any provisions of the Franchise Agreement or any indebtedness or obligation of FRANCHISEE, or settle, adjust, release, or compromise any claims against FRANCHISEE or any guarantor, make advances for the purpose of performing any obligations of FRANCHISEE 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 under the Franchise Agreement, assign the Franchise Agreement or the right to receive any sum payable thereunder, and the undersigned each hereby jointly and severally waive notice of same and agree to remain and be bound by any and
all such amendments and changes to the Franchise Agreement. FRANCHISOR shall have no present or future duty or obligation to the undersigned under this Guarantee, and each of the undersigned waives any right to claim or assert any such duty or obligation, to discover or disclose to the undersigned any information, financial or otherwise, concerning FRANCHISEE, any other guarantor, or any collateral securing any obligations of FRANCHISEE to FRANCHISOR.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the guarantor's obligations can be far-reaching. The franchisor, Apricot Lane, can modify or waive provisions of the Franchise Agreement or any debt of the franchisee without notifying the guarantor. The franchisor can also settle claims against the franchisee or any other guarantor, or provide advances to fulfill the franchisee's obligations.
The guarantor gives up rights to payments, claims for reimbursement, or subrogation against the franchisee that arise from fulfilling their obligations under the guarantee. They also waive the right to assign the Franchise Agreement or receive payments from it. The guarantor remains bound by any changes or amendments to the Franchise Agreement and waives notice of these changes.
Apricot Lane has no obligation to disclose any information, financial or otherwise, about the franchisee, other guarantors, or any collateral securing the franchisee's obligations. The guarantor waives any right to claim or assert such a duty to disclose. This means a guarantor could be held responsible for the franchisee's obligations without being fully aware of the franchisee's financial situation or any modifications to the franchise agreement.