Does the Bumper Man Guaranty allow the Franchisor to accept partial payment from the Franchisee?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Principal consents and agrees that such liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other concession that Franchisor may periodically grant to Franchisee or to any other Person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the Term.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Guaranty signed by the Principal allows the Franchisor to accept partial payments from the Franchisee without affecting the Guaranty. The Principal agrees to be personally liable for all obligations under the Franchise Agreement, including monetary obligations.
Specifically, the document states that the Principal's liability will not be diminished or affected by any extension of time, credit, or other concession granted to the Franchisee. This includes the acceptance of any partial payment. The acceptance of partial payment does not modify or amend the Guaranty, which remains continuing and irrevocable during the term of the agreement.
This means that if a Bumper Man franchisee is unable to make a full payment, the franchisor can accept a partial payment without releasing the Principal from their obligations under the Guaranty. This provides the franchisor with flexibility in working with franchisees who may be experiencing financial difficulties, while still ensuring that the Principal remains liable for the full amount owed.