Can the Franchisor modify the Developer's obligations under the Bft Multi-Unit Agreement without notifying the Guarantor?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Without affecting the obligations of Guarantor under this Guarantee, Indemnification and Acknowledgment (the "Guarantee"), Franchisor may, without notice to Guarantor, extend, modify, or release any indebtedness or obligation of Developer, or settle, adjust or compromise any claims against Developer.
Guarantor waives notice of amendment of the Multi-Unit Agreement and notice of demand for payment by Developer and agrees to be bound by any and all such amendments and changes to the Multi-Unit Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchisor can modify the Developer's obligations without notifying the Guarantor. The Guarantor waives any right to require Bft to proceed against the Developer for any payment or to pursue any remedy against the Developer.
Specifically, the FDD states that Bft may, without notice to the Guarantor, extend, modify, or release any indebtedness or obligation of the Developer, or settle, adjust, or compromise any claims against the Developer. The Guarantor also waives notice of any amendment of the Multi-Unit Agreement and agrees to be bound by any and all such amendments and changes.
This means that as a Guarantor, you are agreeing to be bound by any changes Bft makes to the Multi-Unit Agreement with the Developer, even if you are not informed of those changes beforehand. This could have significant financial implications if the Developer's obligations are increased or altered in a way that makes them more difficult to fulfill. It is crucial to understand the full scope of the Multi-Unit Agreement and the potential for modifications before acting as a Guarantor.