Can the form of the continuing guaranty agreement for Burros Fries be amended or modified?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Each Guarantor consents and agrees that:
- (a) Liability under this Guaranty is joint and several with any other guarantor and the Franchisee;
- (b) Each will render any payment or performance required under this Guaranty on demand, if Franchisee fails or refuses punctually to do so;
- (c) Each will individually comply with the provisions and all subsections of the Agreements and associated documents;
- (d) Liability is not contingent or conditioned on Franchisor's pursuit of any remedies against Franchisee or any other persons; and
- (e) Liability is not affected by any extension of time, acceptance or part performance, release of claims, or other compromise that Franchisor may grant Franchisee or other person, including the acceptance of any partial 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 continuing and irrevocable during the term of the Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the Guaranty agreement cannot be modified or amended. The Guaranty is a schedule to the Franchise Agreement between Burros & Fries Franchise, Inc. and the franchisee.
Each guarantor agrees to personally and unconditionally guarantee the performance of the franchisee under the Franchise Agreement. This includes performing all obligations if the franchisee defaults and paying any judgment or award against the franchisee obtained by Burros Fries. The guarantors are also bound by covenants of the Agreement that survive the expiration or termination of the Agreement, such as noncompetition, indemnity, and non-disclosure provisions.
The Guaranty states that liability is not affected by any extension of time, acceptance of part performance, release of claims, or other compromise that Burros Fries may grant the franchisee or other person. This includes the acceptance of any partial payment or performance, or the compromise or release of any claims. None of these actions will modify or amend the Guaranty, which remains continuing and irrevocable during the term of the Agreement.