Under the Carbones Pizzeria Guaranty, is the guarantor notified of modifications 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 Carbones Pizzeria's 2025 Franchise Disclosure Document, the guarantor is not entitled to receive notice of modifications to the Franchise Agreement. The Guaranty agreement states that the guarantor understands that any modification of the Franchise Agreement, or waiver by Carbones Pizzeria of the franchisee's performance, or any extension of time for performance, or any other forbearance on the part of Carbones Pizzeria, will not release the guarantor from liability.
Specifically, the Guaranty indicates that notice to the guarantor of any modification, waiver, extension, or forbearance is explicitly waived. This means that Carbones Pizzeria is not obligated to inform the guarantor of any changes made to the Franchise Agreement or any leniency shown to the franchisee.
This lack of notification places a significant responsibility on the guarantor to proactively monitor the franchisee's compliance with the Franchise Agreement and maintain open communication with the franchisee. The guarantor remains liable for the franchisee's obligations even if the terms of those obligations change without the guarantor's direct knowledge. It is important for the guarantor to understand the full scope of the agreement and the potential risks involved.