Under the Boulder Designs Guaranty, will a modification of the Franchisor's rights affect my obligations?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
No modification, change, impairment, or suspension of any of Franchisor's rights or remedies shall in any way affect any of my obligations under this Guaranty. If the Franchisee has pledged other security or if one or more other persons have personally guaranteed performance of the Franchisee's obligations, I agree that Franchisor's release of such security will not affect my liability under this Guaranty.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if you sign a Guaranty, your obligations under that Guaranty will not be affected by any modification, change, impairment, or suspension of Boulder Designs' rights or remedies. This means that even if Boulder Designs alters its rights or remedies related to the Franchise Agreement, your responsibilities as a guarantor remain unchanged.
Specifically, the FDD states that even if Boulder Designs releases security from the franchisee, this action will not affect your liability under the Guaranty. This clause is designed to protect Boulder Designs by ensuring that the guarantor's obligations remain intact regardless of any changes made to the agreement between Boulder Designs and the franchisee.
This provision is common in franchise agreements to ensure that guarantees remain enforceable, providing Boulder Designs with a consistent level of security. As a prospective franchisee, it is important to understand that signing a Guaranty means your obligations are independent of any modifications Boulder Designs might make to its rights or remedies under the Franchise Agreement.