Under the Carbones Pizzeria Guaranty, is the guarantor's obligation affected by any modification of 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.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the guarantor's obligations are generally not affected by modifications to the Franchise Agreement or other agreements. The Guaranty specifies that any modification to the Franchise Agreement or any other agreement, including addenda, or any waiver, extension of time, forbearance, or failure to enforce rights by Carbones Pizzeria, will not release the guarantor from liability.
However, there is an exception: the guarantor's liability is affected only to the extent that the franchisee's liability or obligation is released, terminated, affected, or diminished. This means that if a modification to the Franchise Agreement reduces the franchisee's obligations, the guarantor's obligations are reduced to the same degree. The guarantor also waives the right to receive notice of any such modifications, waivers, extensions, or forbearances.
Furthermore, the Guaranty clarifies that the guarantor's obligations remain even in the event of the franchisee's bankruptcy or reorganization. The guarantor is still responsible for all costs and fees owed to Carbones Pizzeria or its affiliates and must fulfill all provisions of the agreements and operating procedures. The guarantor remains individually bound to all covenants, obligations, and commitments of the franchisee as if they had individually executed the Franchise Agreement and other related agreements.