Can the liability of a Chicken Guy franchise Guarantor be affected by amendments to the Franchise Agreement?
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 Franchisee 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 Franchisee 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 Franchisee 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 Franchisee 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 Chicken Guy's 2025 Franchise Disclosure Document, a guarantor's liability is not affected by amendments to the Franchise Agreement. The guarantee stipulates that the guarantor's liability remains in effect throughout the term of the agreement, regardless of any modifications, extensions, or compromises made between Chicken Guy and the franchisee. This includes acceptance of partial payments or releases of claims.
The guarantor's obligations are continuing and irrevocable, lasting as long as the franchisee owes money or has obligations to Chicken Guy or its affiliates under the agreement. This ensures that the guarantor remains responsible for the franchisee's debts and performance, even if the original terms of the agreement are altered.
This provision protects Chicken Guy by ensuring that the guarantee remains valid and enforceable, even if the franchise agreement is modified. Prospective Chicken Guy franchisees should be aware that if they act as a guarantor, their liability will not be diminished by any changes to the franchise agreement. They should carefully consider the potential financial implications before agreeing to guarantee a Chicken Guy franchise.