Does an amendment of the Better Blend Franchise Agreement diminish the Guarantor's liability?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
**4.
Modification.** Guarantor agrees that Guarantor's liability hereunder shall not be diminished, relieved or otherwise affected by (a) any amendment of the Franchise Agreement, (b) any extension of time, credit or other indulgence which BBF may from time to time grant to Franchisee or to any other person or entity, or (c) the acceptance of any partial payment or performance or the compromise or release of any claims.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a Guarantor's liability will not be diminished if the Franchise Agreement is amended. The Guarantor agrees that their liability will not be affected by any amendment to the Franchise Agreement.
This means that even if the terms of the Franchise Agreement change, the Guarantor remains fully responsible for their obligations under the Guaranty and Non-Compete Agreement. This protects Better Blend from a Guarantor attempting to avoid their obligations based on changes to the agreement between Better Blend and the franchisee.
In addition to amendments, the Guarantor's liability also remains intact if Better Blend grants the franchisee an extension of time or credit, or accepts partial payment. The Guarantor is still responsible for the full obligations, even if Better Blend is lenient with the franchisee. This provision is designed to provide Better Blend with maximum protection and recourse in case of franchisee default, ensuring that the guarantor cannot use modifications to the franchise agreement as a loophole to escape their obligations.