Can the liability of the undersigned be waived or diminished by any extensions of time granted to the Developer by B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned further agree as follows: (a) that this Guaranty shall be continuing and irrevocable; (b) that they, and each of them, shall render any payment or performance required under this Agreement upon demand if Developer fails or refuses promptly to do so; (c) such liability shall be primary and shall not be contingent upon Company pursuing or exhausting any remedies against Developer; (d) such liability shall not be waived, diminished or otherwise affected by any extension of time, credit or other indulgence which Company may from time to time grant to Developer; and (e) that they, and each of them, hereby waive notice of acceptance, demand, protest, nonperformance and of any other notices.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the personal guarantors' liability will not be waived or diminished if B Bops grants the Developer an extension of time. The personal guaranty ensures that the individuals signing the guaranty are bound by the terms of the Multiple-Unit Development Agreement.
Specifically, the undersigned persons, who are partners or shareholders of the Developer, agree to be personally bound by the agreement and guarantee the Developer's obligations to B Bops. This includes guaranteeing the full and prompt payment of any indebtedness of the Developer.
The agreement explicitly states that the liability of the guarantors is primary and not contingent upon B Bops pursuing remedies against the Developer first. Furthermore, the liability "shall not be waived, diminished or otherwise affected by any extension of time, credit or other indulgence" that B Bops may grant to the Developer. The guarantors also waive notice of acceptance, demand, protest, nonperformance, and any other notices.