Under the Carbones Pizzeria Guaranty, does the guarantor have to be notified of any modification 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.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the guarantor is not required to be notified of any modifications to the Franchise Agreement. The Guaranty states that any modification of the Franchise Agreement, waiver by Carbones Pizzeria of the franchisee's performance, extension of time for performance, or any forbearance on the part of Carbones Pizzeria will not release the guarantor from liability. The guarantor waives their right to receive notice of any such modification, waiver, extension, or forbearance.
This means that as a prospective Carbones Pizzeria franchisee, if someone guarantees your obligations under the Franchise Agreement, that guarantor remains liable even if the agreement is changed later on, without them being informed. This could create a significant risk for the guarantor, as they would be responsible for obligations under a modified agreement they didn't explicitly consent to.
This clause is designed to protect Carbones Pizzeria by ensuring that the guaranty remains in effect regardless of any changes made to the Franchise Agreement. It is important for potential guarantors to carefully consider this provision and understand the full extent of their obligations before signing the Guaranty. Franchisees should also be aware of this when asking someone to act as a guarantor, as it places a considerable burden on them.