Under the Chatime franchise agreement, does the termination of the agreement affect the guarantor's liability under clauses 18.3 and 18.4?

According to Chatime's 2025 Franchise Disclosure Document, the termination of the franchise agreement does not affect the guarantor's liability under clauses 18.3 and 18.4. The guarantor's obligations to Chatime remain in effect even if the agreement is terminated.

Specifically, the guarantor's liability is not affected by the granting of time, forbearance, or other concession by Chatime to the franchisee or any guarantor. It also remains unchanged by an absolute or partial release of the franchisee or any guarantor, a compromise with them, a variation of the agreement, or a transfer of the agreement by the franchisee. Disputes between the franchisee and Chatime, or the fact that the agreement is wholly or partially void, voidable, or unenforceable, also do not impact the guarantor's liability.

Furthermore, the guarantor's liability remains even if the agreement was not executed by one or more of the persons named as guarantor, or if the guarantee or indemnity is unenforceable against one or more guarantors. The exercise or purported exercise by Chatime of its rights under the agreement does not affect the guarantor's liability either. This ensures that Chatime has a continuing security regardless of the status of the franchise agreement or disputes between the parties.