Is the Guarantor's liability under the Better Blend Guaranty affected by a compromise of any claims?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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, the Guarantor's liability is not affected by a compromise of any claims. The Guaranty agreement specifies that the Guarantor's obligations remain even if Better Blend accepts partial payment, performance, or compromises or releases claims related to the Franchise Agreement. This protects Better Blend by ensuring the Guarantor remains responsible for the franchisee's obligations, regardless of any concessions Better Blend might make to the franchisee.
This provision means that if Better Blend agrees to settle for less than the full amount owed by the franchisee, or releases certain claims against them, the Guarantor's responsibility to cover the original, full obligation is not reduced or eliminated. The Guarantor cannot argue that their liability should be decreased because Better Blend made concessions to the franchisee.
For a prospective Better Blend franchisee, this highlights the importance of understanding the full scope of the Guaranty agreement. Individuals considering acting as a Guarantor should be aware that their financial responsibility is comprehensive and not contingent on the specific actions Better Blend takes with the franchisee. They should carefully assess the franchisee's financial capabilities and the potential risks involved before signing the Guaranty.