Under the Bevaris Alliance agreement, does the Franchisor compromising with the Franchisee affect the Individual's liabilities?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the Individual's liabilities, as a guarantor, are not reduced or affected if the Franchisor compromises with the Franchisee. Clause 22 outlines the Individual's guarantee and covenants, stipulating that the Individual acts as a primary obligor, guaranteeing the Franchisee's performance and payments under the agreement. This guarantee is unconditional and covers the Franchisee's obligations.

Specifically, section 22.3(c) states that the Individual's liability will not be reduced, discharged, or adversely affected by the Franchisor compromising, varying, extending, dealing with, renewing, releasing, refusing, or neglecting to perfect or enforce any right, remedy, or security against the Franchisee. This means that even if Bevaris Alliance makes concessions or adjustments to the agreement with the Franchisee, the Individual's obligations as a guarantor remain fully in effect.

This provision protects Bevaris Alliance by ensuring that the Individual remains responsible for the Franchisee's obligations, regardless of any modifications or compromises made between Bevaris Alliance and the Franchisee. For a prospective franchisee, this highlights the importance of the Individual fully understanding the obligations they are guaranteeing, as their liability persists even if the terms of the agreement are altered or if Bevaris Alliance chooses not to enforce certain rights against the Franchisee. The Individual should seek legal counsel to fully understand the implications of this guarantee.