Can the Brightstar Care guarantor's liability be affected by any extension of time granted to the franchisee?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (1) his or her direct and immediate liability under this Guaranty will be joint and several, both with Franchisee and among other guarantors; (2) he or she will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) this liability will not be contingent or conditioned upon Franchisor's pursuit of any remedies against Franchisee or another person; (4) this liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence Franchisor may from time to time grant to Franchisee or to another person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims (including, without limitation, any release of other guarantors), none of which will in any way modify or amend this Guaranty, which will continue and be irrevocable during the term of the Agreement (including, without limitation, any extensions of its term) and afterward for so long as any performance is or might be owed under the Agreement by Franchisee or any of its owners and for so long as Franchisor has any cause of action against Franchisee or any of its owners; (5) this Guaranty will continue in full force and effect for (and as to) any extension or modification of the Agreement and despite the transfer of any interest in the Agreement or Franchisee, and each of the undersigned waives notice of any and all renewals, extensions, modifications, amendments, or transfers; and (6) any Franchisee indebtedness to the undersigned, for whatever reason, whether currently existing or hereafter arising, will at all times be inferior and subordinate to any indebtedness owed by Franchisee to Franchisor or its affiliates.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a guarantor's liability is not affected by any extension of time, credit, or other leniency that Brightstar Care may grant to the franchisee. The guarantor's obligations remain in effect regardless of any such extensions or modifications to the agreement.
Specifically, the guarantor's liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence Brightstar Care may grant to the franchisee or to another person. This includes the acceptance of any partial payment or performance, or the compromise or release of any claims, including the release of other guarantors. These actions do not modify or amend the Guaranty, which remains irrevocable during the term of the Agreement, including any extensions, and afterward as long as any performance is or might be owed under the Agreement by the franchisee or any of its owners, and for as long as Brightstar Care has any cause of action against the franchisee or any of its owners.
Furthermore, the Guaranty remains in full force and effect for any extension or modification of the Agreement, even if there is a transfer of any interest in the Agreement or the franchisee. The guarantor waives notice of any and all renewals, extensions, modifications, amendments, or transfers. This ensures that the guarantor's obligations persist despite changes to the franchise agreement or the franchisee's ownership.
This clause is designed to protect Brightstar Care by ensuring that the guarantor remains fully liable for the franchisee's obligations, even if the franchisor provides some flexibility or leniency to the franchisee. Prospective franchisees should ensure that any guarantors understand the full extent of their obligations and the implications of this clause.