Can amendments 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 Chocolate Bash's 2024 Franchise Disclosure Document, a Guarantor's liability will not be affected by any amendments to the Franchise Agreement. The Guaranty and Non-Compete Agreement specifies that the Guarantor's obligations remain even if the Franchise Agreement is modified. This means that any changes to the agreement between Chocolate Bash and the franchisee do not release the Guarantor from their responsibilities.
Specifically, the Guarantor's liability is not diminished, relieved, or otherwise affected by any amendment of the Franchise Agreement. This also applies to any extensions of time, credit, or other allowances that Chocolate Bash might grant to the franchisee or any other person or entity. Furthermore, the acceptance of any partial payment or performance, or any compromise or release of claims, does not impact the Guarantor's liability.
This provision protects Chocolate Bash by ensuring that the Guarantor remains fully responsible for the franchisee's obligations, regardless of any changes made to the Franchise Agreement. Prospective franchisees should ensure that their guarantors fully understand this aspect of the Guaranty and Non-Compete Agreement, as it could have significant financial implications for the guarantor.