Under the Carbones Pizzeria Guaranty, does the guarantor have to be notified of any waiver granted to the Franchisee?
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 if Carbones Pizzeria waives the performance of any obligation by the franchisee. The guarantor agrees that any modification of the Franchise Agreement, waiver by Carbones Pizzeria, extension of time for performance, or any forbearance on the part of Carbones Pizzeria will not release the guarantor from liability.
This means that as a prospective Carbones Pizzeria franchisee, if someone guarantees your obligations to the franchisor, that guarantor remains liable even if Carbones Pizzeria makes concessions to you without informing the guarantor. The guarantor's obligations remain in effect unless the franchisee's liability or obligation is directly released, terminated, affected, or diminished by Carbones Pizzeria.
This lack of required notification is a significant point for potential guarantors. They should understand they will remain responsible for the franchisee's obligations even if the franchisor and franchisee alter their agreement without the guarantor's knowledge or consent. The guarantor is essentially waiving their right to be informed of such changes. This is a fairly standard clause in franchise agreements, as it protects the franchisor's interests by ensuring the guaranty remains valid even if the underlying agreement is modified.