Is the Brain Balance Guaranty irrevocable during the term of the Franchise Agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this guaranty, which shall be irrevocable during the term of the Agreement; and
(5) the liability and obligations under this Guaranty and Assumption shall not be diminished, relieved or otherwise affected by any modification by FRANCHISEE and FRANCHISOR of the terms or conditions of the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, the Guaranty provided by the guarantor is indeed irrevocable during the term of the Franchise Agreement. This means that the guarantor cannot cancel or revoke their guarantee during the period the agreement is in effect.
Specifically, the document states that the guaranty cannot be modified or amended and remains in effect for the duration of the agreement. Furthermore, the liability and obligations under the Guaranty are not affected by any modifications made to the terms of the agreement between the franchisee and Brain Balance. This ensures that the guarantor's obligations remain constant, regardless of any changes to the franchise agreement itself.
For a prospective Brain Balance franchisee, this implies that anyone acting as a guarantor (often a family member or business partner) must understand that their commitment is firm for the entire term. They cannot withdraw their guarantee, and their obligations will not be reduced even if the franchise agreement is altered. This is a significant legal and financial responsibility that should be carefully considered before signing the Guaranty.
This type of irrevocable guarantee is common in franchising to provide the franchisor with added security. It ensures that there is a party responsible for the franchisee's obligations throughout the term of the agreement, regardless of changes or challenges the franchisee may face. Franchisees should ensure that any potential guarantors fully understand the implications before they agree to sign the Guaranty.