Can amendments to the Chicken Guy Restaurant Development Agreement diminish the Guarantor's liability?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (i) his direct and immediate liability under this Guarantee shall be joint and several; (ii) he shall render any payment or performance required under the Agreement upon demand if Developer fails or refuses punctually to do so; (iii) such liability shall not be contingent or conditioned upon pursuit by Chicken Guy of any remedies against Developer or any other person; (iv) 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 Chicken Guy 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 Chicken Guy or its affiliates under the Agreement; and (v) monies received from any source by Chicken Guy 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 Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, amendments to the Restaurant Development Agreement do not diminish the Guarantor's liability. The guarantee provided by the guarantor remains in effect regardless of any changes made to the agreement.
Specifically, the FDD states that the guarantor's liability will not be affected by any amendment to the agreement, any extension of time, credit, or other leniency that Chicken Guy may grant to the developer or any other person. This includes accepting partial payments, performance, or compromising or releasing claims. None of these actions will modify or amend the guarantee, which remains continuous and irrevocable during the agreement's term.
This means that as a prospective Chicken Guy franchisee, the guarantor's obligations remain unchanged even if the development agreement is modified. This provides Chicken Guy with a consistent level of financial security throughout the term of the agreement, regardless of any changes that may be made to the agreement itself. The guarantor remains responsible for the franchisee's obligations to Chicken Guy, even if those obligations are altered through amendments to the agreement.