What notice of any amendment, modification, change, alteration or extension of the Carls Jr. agreement does each of the undersigned waive?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Each of the undersigned consents and agrees that: (1) his direct and immediate liability under this Guarantee shall be joint and several; (2) he shall render any payment or performance required under the Agreement if Developer fails or refuses punctually to do so; (3) such liability shall not be contingent or conditioned upon pursuit by CJR of any remedies against Developer or any other person; (4) such liability shall not be diminished, relieved or otherwise affected by any amendment of the Agreement, any extension of time, credit or other indulgence which CJR may from time to time grant to Developer or to any other person including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which shall in any way modify or amend this Guarantee, which shall be continuing and irrevocable during the term of the Agreement and for so long thereafter as there are monies or obligations owing from Developer to CJR or its affiliates under the Agreement; and (5) monies received from any source by CJR for application toward payment of the obligations under the Agreement and under this Guarantee may be applied in any manner or order deemed appropriate by CJR.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, each guarantor agrees that their liability will not be diminished, relieved, or otherwise affected by any amendment of the Agreement, any extension of time, credit, or other indulgence which Carls Jr. may from time to time grant to Developer or to any other person including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims.
This means that the individuals who sign the guarantee are responsible for the obligations under the agreement, even if the terms of the agreement are changed, or if Carls Jr. gives the developer more time or credit. The guarantor's obligations remain in place regardless of these changes. This also means that the guarantor's obligations are not affected even if Carls Jr. accepts partial payments or releases some claims.
This waiver is designed to protect Carls Jr. by ensuring that the guarantors remain fully liable for the obligations under the agreement, regardless of any changes or concessions made to the developer. Prospective franchisees should carefully consider the implications of this guarantee and seek legal advice to fully understand their obligations before signing.