Under the Carbones Pizzeria Guaranty, is the guarantor's obligation affected by any addendum to any other 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.
The undersigned further understand and agree that no bankruptcy or reorganization of Franchisee shall release or otherwise affect the obligations of the undersigned to pay all costs and fees provided for in all agreements between Franchisee and Franchisor or its affiliates, or otherwise owing to Franchisor or its affiliates, and to perform all the provisions of such agreements, as well as all manuals and operating procedures of Franchisor's business system, nor does the same release the undersigned from being individually bound to perform all covenants, obligations, and commitments of Franchisee contained in the Franchise Agreement or any other agreement to the same extent as if each of the undersigned had individually executed the Franchise Agreement and such other agreements.
This Guaranty shall be enforceable upon ten (10) days' written notice by Franchisor to any of the undersigned of any default by Franchisee of any of its covenants under the terms of the Franchise Agreement and addendum or addenda thereto. The undersigned hereby waive any and all notice of default on the part of Franchisee; waive exhausting of recourse against Franchisee; and consent to any assignment
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the guarantor's obligations under the Guaranty are not typically affected by modifications, waivers, extensions, or forbearance related to the Franchise Agreement or any other agreement, including addenda. The guarantor remains liable unless the franchisee's liability or obligation is specifically released, terminated, affected, or diminished by such changes.
This means that even if Carbones Pizzeria modifies the Franchise Agreement with the franchisee, or grants waivers or extensions, the guarantor's responsibility to ensure the franchisee meets their financial and performance obligations generally remains intact. The guarantor is essentially agreeing to be bound by the original terms and any subsequent changes that do not explicitly reduce the franchisee's obligations.
Furthermore, the guarantor waives the right to be notified of any such modifications, waivers, extensions, or forbearance. This places a significant responsibility on the guarantor to stay informed about the franchisee's ongoing relationship with Carbones Pizzeria and any changes to their agreements. The guarantor's obligations also remain even if the franchisee declares bankruptcy or undergoes reorganization.
Carbones Pizzeria will provide a ten-day written notice to the guarantor in the event of any default by the franchisee. The guarantor also waives any and all notice of default on the part of Franchisee; waives exhausting of recourse against Franchisee; and consents to any assignment.