Under the Carbones Pizzeria Guaranty, is the guarantor bound by the covenants of the Franchisee?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the guarantor is indeed bound by the covenants, obligations, and commitments of the franchisee. The guaranty ensures that if the franchisee fails to meet their obligations under the Franchise Agreement or any other agreements with Carbones Pizzeria, the guarantor is individually responsible to the same extent as if they were the franchisee themselves. This includes adhering to all terms outlined in the Franchise Agreement, as well as any other related agreements.

This means that the guarantor's liability extends to both the payment of costs and fees and the performance of all obligations. The guarantor is essentially stepping into the shoes of the franchisee regarding the commitments made to Carbones Pizzeria. This provision is designed to provide Carbones Pizzeria with an additional layer of security, ensuring that the obligations of the Franchise Agreement are fulfilled, even if the franchisee defaults.

Furthermore, the guarantor remains bound by these obligations even if there are modifications to the Franchise Agreement, waivers of performance, extensions of time, or any other forbearance on the part of Carbones Pizzeria. The guarantor's obligations are only released, terminated, affected, or diminished to the same extent that the franchisee's obligations are. The guarantor also agrees that bankruptcy or reorganization of the franchisee does not release them from their obligations under the guaranty.

Carbones Pizzeria will provide a ten-day written notice to the guarantor of any default by the franchisee. The guarantor waives any requirement for Carbones Pizzeria to first exhaust its recourse against the franchisee before pursuing the guarantor. This clause ensures that Carbones Pizzeria can directly seek recourse from the guarantor without delay, streamlining the process of enforcing the terms of the Franchise Agreement.