Are there any circumstances under which the Principal's obligations under the Bumper Man Guaranty would be diminished?
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.
Principal waives all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the undersigned's execution of and performance under this Guaranty.
This Guaranty and all claims arising from, under or with respect to the relationship between Franchisor and Principal(s) will be interpreted, enforced and governed by the laws of Texas (without regard to Texas conflicts of law rules).
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Principal's liability under the Guaranty will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other concession that Bumper Man may periodically grant to the franchisee or any other person. This includes the acceptance of any partial payment or performance, or the compromise or release of any claims. The Guaranty remains continuing and irrevocable during the term of the agreement.
Furthermore, the Principal waives all rights to payments and claims for reimbursement or subrogation against the franchisee arising from the Principal's execution and performance under the Guaranty. The Guaranty is governed by the laws of Texas, without regard to its conflicts of law rules.
In essence, the Principal's obligations are designed to be comprehensive and unwavering, ensuring that Bumper Man is protected against potential breaches of the franchise agreement. The Principal's commitment remains steadfast throughout the term, irrespective of any modifications or concessions made between Bumper Man and the franchisee.