Under the Beverly Anns Cookie Guaranty, can the Debt be renewed, extended, modified, or substituted?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
I consent to all renewals, extensions, modifications and substitutions of the Debt which may be made by you upon such terms and conditions as you may see fit from time to time without further notice to me and without limitation as to the number of renewals, extensions, modifications or substitutions.
- **4.
UNCONDITIONAL LIABILITY.** I am unconditionally liable under this Guaranty, regardless of whether or not you pursue any of your remedies against the Borrower, against any other maker, surety, guarantor or endorser of the Debt or against any Property.
You may sue me alone, or anyone else who is obligated on this Guaranty, or any number of us together, to collect the Debt.
My liability is not conditioned on the signing of this Guaranty by any other person and further is not subject to any condition not expressly set forth in this Guaranty or any instrument executed in connection with the Debt.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the guaranty related to debt allows for renewals, extensions, modifications, and substitutions. Specifically, the document states that consent is given to all renewals, extensions, modifications, and substitutions of the debt, which may be made under terms and conditions deemed fit without further notice.
This means that as a guarantor, the individual is agreeing to be bound by any changes to the debt agreement, including but not limited to, extensions of the payment period, modifications to the interest rate, or substitutions of the debt with a new debt instrument. This consent is given upfront, without requiring further notification or approval from the guarantor for each specific change.
The guarantor's liability is unconditional, regardless of whether Beverly Anns Cookie pursues remedies against the borrower or any other party responsible for the debt. The guarantor can be sued alone or with others obligated under the guaranty to collect the debt. The obligation is not conditional upon any other person signing the Guaranty, and it is not subject to any condition not expressly stated in the Guaranty or any related instrument.
For a prospective Beverly Anns Cookie franchisee, this clause highlights the importance of understanding the full scope of the guaranty being provided. The franchisee should carefully consider the potential implications of these broad powers to renew, extend, modify, or substitute the debt, as these actions could significantly alter the guarantor's obligations and financial exposure.