Is the Bananas Smoothies Frozen Yogurt guaranty considered irrevocable?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (i) his/her direct and immediate liability under this guaranty shall be joint and several; (ii) he/she shall render any payment or performance required under the Sublease upon demand if Sublessee fails or refuses punctually to do so; (iii) such liability shall not be contingent or conditioned upon pursuit by Sublessor of any remedies against Sublessee or any other person; and (iv) such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which the Sublessor may from time to time grant to Sublessee 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 Sublease.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the Owners' Personal Guaranty of Sublessee's Obligations includes a clause stating that the guaranty is continuing and irrevocable during the term of the sublease. This means that the guarantor's liability remains in effect throughout the sublease period and cannot be canceled or withdrawn.
This clause has significant implications for anyone signing the guaranty. They are committing to cover the sublessee's obligations for the entire duration of the sublease, regardless of any changes or extensions to the agreement. The guarantor's liability is not contingent on the sublessor pursuing remedies against the sublessee first, and it is not affected by any extensions of time, credit, or other allowances the sublessor might grant to the sublessee.
Furthermore, the guaranty remains in force even if partial payments are accepted or claims are compromised or released. These actions do not modify or amend the guaranty. This "continuing and irrevocable" clause provides strong protection for the sublessor, Everything Yogurt Brands, LLC, ensuring that the sublessee's obligations are met throughout the term of the sublease. Prospective franchisees should carefully consider the full extent of this commitment before signing the Owners' Personal Guaranty.