Under the Carbones Pizzeria Guaranty, what is the effect of a modification of any agreement on the guarantor's liability?
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.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, any modifications to the Franchise Agreement or any other agreement do not release the guarantor from their liability. This includes any addendums, waivers by Carbones Pizzeria of the franchisee's performance, extensions of time for performance, or any forbearance on the part of Carbones Pizzeria. The guarantor's obligations remain intact regardless of these changes.
The only exception to this is if the franchisee's liability or obligation is released, terminated, affected, or diminished. In that specific case, the guarantor's liability is similarly affected, but only to the same extent as the franchisee's. The guarantor also waives their right to receive notice of any such modification, waiver, extension, or forbearance.
This clause ensures that Carbones Pizzeria has a consistent and reliable guarantee, regardless of any changes made to the agreement with the franchisee. Potential guarantors need to understand that their obligations are unlikely to be reduced or eliminated due to modifications or waivers granted to the franchisee, unless those changes directly and proportionally reduce the franchisee's own liability.