Can the guarantor's liability be diminished by any extension of time or credit granted to the franchisee by Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ny other person as a condition of liability; and
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- Any and all other notices and legal or equitable defenses to which he or she may be entitled.
Each of the undersigned consents and agrees that:
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- His or her direct and immediate liability under this guaranty shall be joint and several;
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- He or she shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so;
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- Such liability shall not be contingent or conditioned upon pursuit by Bambu of any remedies against Franchisee or any other person; and
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- Such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which Bambu 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 shall in any way modify or amend this guaranty, which shall be continuing and irrevocable during the term of the Agreement, including successor franchise terms.
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- His or her obligation and liability hereunder shall not be affected by any amendment or modification of the Agreement and he or she has no right to approve or consent to any such amendment or modification.
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- He or she shall be bound by the restrictive covenants and confidentiality provisions contained in Article 21 of the Agreement and the indemnification provision contained in Section 20.3 of the Agreement and such provisions are incorporated into this Guaranty by this reference; and
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- The governing law, venue, jurisdiction, injunctive relief, limitations on remedies and attorneys' fee provisions contained in Article 23 and Section 24.6 of the Agreement shall govern this Guaranty and such provisions are incorporated into this Guaranty by this reference.
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- This Guaranty may be executed by electronic signature.
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- HE OR SHE WAIVES HIS OR HER RIGHT TO A TRIAL BY JURY.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a guarantor's liability will not be diminished if Bambu grants the franchisee an extension of time or credit. The guarantor's obligations remain in effect regardless of any leniency Bambu offers to the franchisee.
Specifically, the guarantor's liability is not contingent upon Bambu pursuing remedies against the franchisee or any other person. This means Bambu can seek payment or performance directly from the guarantor without first attempting to collect from the franchisee. The guarantor's obligations are joint and several, meaning each guarantor is individually responsible for the full amount of the debt.
Furthermore, the guarantor's liability will not be affected by any modifications to the franchise agreement. The guarantor does not have the right to approve or consent to any such changes. The guarantor is also bound by the restrictive covenants, confidentiality provisions, and indemnification provisions outlined in the agreement, as well as the stipulations regarding governing law, venue, jurisdiction, injunctive relief, limitations on remedies, and attorneys' fees.
In essence, the guaranty is designed to be continuing and irrevocable during the term of the agreement, including any successor franchise terms. This ensures that Bambu has a reliable source of recourse in case the franchisee defaults, regardless of any changes or concessions made to the franchisee's obligations.