Does acceptance of partial payment affect the Guarantor's liability to Bombs Away?

According to Bombs Away's 2024 Franchise Disclosure Document, the guarantor's liability will not be affected by the acceptance of any partial payment. The Guaranty and Non-Compete Agreement ensures that the Guarantor's obligations remain intact regardless of Bombs Away's decisions regarding payment or performance from the franchisee.

Specifically, the agreement states that the guarantor's liability is not diminished, relieved, or otherwise affected by the acceptance of any partial payment or performance. This means that even if Bombs Away accepts a partial payment from the franchisee, the guarantor remains fully responsible for the entire outstanding obligation. This provision protects Bombs Away by ensuring that the guarantor cannot claim reduced liability due to Bombs Away's acceptance of less than the full amount owed by the franchisee.

This clause is typical in franchise agreements where a guarantor is involved, as it provides an additional layer of security for the franchisor. Prospective Bombs Away franchisees should understand that if they have a guarantor, that guarantor's obligations are not lessened by any partial payments or compromises Bombs Away might make with the franchisee. The guarantor remains fully liable for the franchisee's obligations.