Does an amendment to the Chocolate Bash Franchise Agreement affect the Guarantor's liability?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor agrees that Guarantor's liability hereunder shall not be diminished, relieved or otherwise affected by (a) any amendment of the Franchise Agreement, (b) any extension of time, credit or other indulgence which CB Franchising may from time to time grant to Franchisee or to any other person or entity, or (c) the acceptance of any partial payment or performance or the compromise or release of any claims.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, a Guarantor's liability will not be diminished, relieved, or otherwise affected by any amendment to the Franchise Agreement. This means that even if the Franchise Agreement is changed, the Guarantor remains responsible for their obligations under the Guaranty and Non-Compete Agreement.
Specifically, the Guarantor's liability remains intact regardless of any extensions of time, credit, or other allowances that Chocolate Bash may grant to the franchisee or any other person or entity. Similarly, the acceptance of any partial payment or performance, or any compromise or release of claims, does not impact the Guarantor's obligations.
This provision ensures that Chocolate Bash retains recourse against the Guarantor, even if the terms of the Franchise Agreement are altered or if the franchisee receives some form of leniency. Prospective franchisees should carefully consider the implications of the Guaranty and Non-Compete Agreement, as it creates a continuing obligation that is not easily discharged.