Does the Carbones Pizzeria Guaranty apply to addenda to the Franchise Agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned understand and agree that any modification of the Franchise Agreement or any other agreement, including any addendum or addenda thereto, or waiver by Franchisor of the performance by Franchisee of its obligations thereunder, or the giving by Franchisor of any extension of time for the performance of any of the obligations of Franchisee thereunder, or any other forbearance on the part of Franchisor or any failure by Franchisor to enforce any of its rights under the Franchise Agreement or any other agreement, including any addendum or addenda thereto, shall not in any way release the undersigned from liability hereunder or terminate, affect, or diminish the validity of this Guaranty, except to the same extent, but only to such extent, that the liability or obligation of Franchisee is so released, terminated, affected, or diminished. Notice to the undersigned of any such modification, waiver, extension, or forbearance under the terms thereof being hereby waived.
The undersigned further understand and agree that no bankruptcy or reorganization of Franchisee shall release or otherwise affect the obligations of the undersigned to pay all costs and fees provided for in all agreements between Franchisee and Franchisor or its affiliates, or otherwise owing to Franchisor or its affiliates, and to perform all the provisions of such agreements, as well as all manuals and operating procedures of Franchisor's business system, nor does the same release the undersigned from being individually bound to perform all covenants, obligations, and commitments of Franchisee contained in the Franchise Agreement or any other agreement to the same extent as if each of the undersigned had individually executed the Franchise Agreement and such other agreements.
This Guaranty shall be enforceable upon ten (10) days' written notice by Franchisor to any of the undersigned of any default by Franchisee of any of its covenants under the terms of the Franchise Agreement and addendum or addenda thereto. The undersigned hereby waive any and all notice of default on the part of Franchisee; waive exhausting of recourse against Franchisee; and consent to any assignment
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the Guaranty does apply to any addenda to the Franchise Agreement. The Guaranty ensures that the guarantor remains liable even if the Franchise Agreement is modified, which includes any addenda.
Specifically, the guarantor acknowledges that any modification of the Franchise Agreement or any other agreement, including addenda, does not release them from their obligations under the Guaranty. This means that if Carbones Pizzeria adds an addendum to the Franchise Agreement, the guarantor is still responsible for the franchisee's performance and financial obligations as outlined in the original agreement and any subsequent addenda.
Furthermore, the Guaranty remains enforceable even if Carbones Pizzeria waives the franchisee's performance of certain obligations or grants extensions of time. The guarantor's obligations are only diminished to the extent that the franchisee's liability is directly released, terminated, affected, or diminished. The guarantor also waives any right to notice of default on the part of the franchisee and consents to any assignment.