Under the Carbones Pizzeria Guaranty, what is the effect of the Franchisor's consent to any assignment?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the guarantor consents to any assignment of the Franchise Agreement that Carbones Pizzeria or its assignees may make. This consent is part of a continuing Guaranty that cannot be revoked without the prior written consent of Carbones Pizzeria. The Guaranty applies to all agreements referenced within it, including renewals and successor agreements.

In practical terms, this means that if a Carbones Pizzeria franchisee decides to sell their franchise to a new owner, and Carbones Pizzeria consents to this transfer, the guarantor's obligations under the Guaranty remain in effect. The guarantor cannot claim that the assignment releases them from their responsibilities. This ensures that Carbones Pizzeria has continuous financial security related to the franchise agreement, even if the original franchisee is no longer involved.

For a prospective Carbones Pizzeria franchisee, this clause highlights the importance of understanding the full scope of the Guaranty. Anyone acting as a guarantor needs to be aware that their obligations will continue even if the franchise changes ownership, unless Carbones Pizzeria provides explicit written consent to release them. This continuing obligation provides added security to Carbones Pizzeria, as it ensures financial backing regardless of who operates the franchise.