Can the terms of the Bonchon Franchise Agreement be altered without affecting the obligations of the undersigned under the guarantee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned hereby agree, furthermore, that without the consent of or notice to any of the undersigned and without affecting any of the obligations of the undersigned hereunder: (a) any term, covenant or condition of the Franchise Agreement may be amended, compromised, released or otherwise altered by Franchisor and Franchisee, and the undersigned do guarantee and promise to perform all the obligations of Franchisee under the Agreement as so amended, compromised, released or altered; (b) any guarantor of or party to the Franchise Agreement may be released, substituted or added; (c) any right or remedy under the Agreement, this Guarantee or any other instrument or agreement between Franchisor and Franchisee may be exercised, not exercised, impaired, modified, limited, destroyed or suspended; and, (d) Franchisor or any other person may deal in any manner with Franchisee, any of the undersigned, any party to the Franchise Agreement or any other person.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the terms of the Franchise Agreement can be altered without affecting the obligations of the guarantor. The guarantor, by signing the guarantee, agrees to be bound by any changes made to the Franchise Agreement.
Specifically, the guarantor agrees that Bonchon and the franchisee can amend, compromise, release, or otherwise alter any term, covenant, or condition of the Franchise Agreement without requiring the guarantor's consent or even notifying them. The guarantor remains obligated to perform all the franchisee's obligations under the agreement, even with these changes. This also extends to the possibility of releasing, substituting, or adding other guarantors or parties to the agreement.
Furthermore, Bonchon has the right to exercise, not exercise, impair, modify, limit, destroy, or suspend any right or remedy under the Franchise Agreement, the guarantee, or any other agreement between Bonchon and the franchisee, all without affecting the guarantor's obligations. Bonchon or any other person can deal with the franchisee, any of the guarantors, or any party to the Franchise Agreement in any manner without impacting the guarantor's responsibilities.
This clause ensures that Bonchon has broad flexibility in managing the Franchise Agreement without being constrained by the need to obtain consent from or even notify the guarantor of changes. However, it places a significant responsibility on the guarantor, who remains bound by the guarantee even if the underlying agreement is substantially altered.