Does an extension of time granted to the Franchisee affect the Guarantor's liability to Bombs Away?

According to Bombs Away's 2024 Franchise Disclosure Document, the Guarantor's liability is not affected by any extension of time granted to the Franchisee. The Guarantor agrees that their liability will not be diminished, relieved, or otherwise affected by any extension of time Bombs Away Franchising may grant to the Franchisee. This means that even if Bombs Away gives the franchisee more time to meet their obligations, the guarantor remains fully responsible for those obligations.

This provision protects Bombs Away by ensuring that the guarantor cannot claim the extension of time as a reason to reduce or eliminate their liability. The guarantor's commitment remains firm regardless of any flexibility Bombs Away offers to the franchisee. This is a common practice in franchising, as franchisors seek to secure their financial interests through guarantees.

For a prospective Bombs Away franchisee, this highlights the importance of carefully considering who will act as the guarantor and ensuring they fully understand the extent of their obligations. The guarantor should be financially stable and prepared to cover the franchisee's debts or other liabilities to Bombs Away, even if the franchisee is given extra time to fulfill those obligations. The guarantor should be fully aware of the terms and conditions of the franchise agreement and the guaranty agreement, as their liability is directly tied to the franchisee's performance.