What defenses does the Guarantor waive under the Chocolate Bash Guaranty?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
If all or any portion of the covenants in this Section is held to be unenforceable or unreasonable by any court, then the parties intend that the court modify such restriction to the extent reasonably necessary to protect the legitimate business interests of CB Franchising.
Guarantor agrees that the existence of any claim it or Franchisee may have against CB Franchising shall not constitute a defense to the enforcement by CB Franchising of the covenants of this Section.
If Guarantor fails to comply with the obligations under this Section during the restrictive period, then the restrictive period will be extended an additional day for each day of noncompliance.
- **4.
Employee Recruitment.** During the term of the Franchise Agreement and for one year after termination, transfer, or expiration of the Franchise Agreement, Guarantor shall not knowingly employ or seek to employ or engage as an independent contractor any person then employed by CB Franchising or its affiliates.
- **5.
Modification.** Guarantor agrees that Guarantor's liability hereunder shall not be diminished, relieved or otherwise af
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the Guarantor agrees that the existence of any claim they or the Franchisee may have against Chocolate Bash will not serve as a defense to the enforcement by Chocolate Bash of the covenants within the Guaranty. This means that even if the franchisee or guarantor believes Chocolate Bash has breached the agreement or owes them money, they cannot use that as a reason to avoid fulfilling their obligations under the Guaranty.
Additionally, if the Guarantor fails to comply with their obligations during the restrictive period, the restrictive period will be extended by an additional day for each day of noncompliance. This provision ensures that Chocolate Bash can enforce the non-compete and other restrictive covenants effectively.
Furthermore, the Guarantor's liability will not be diminished, relieved, or otherwise affected by various circumstances, including modifications to the Franchise Agreement, forbearance, or extensions of time granted to the Franchisee. This clause aims to protect Chocolate Bash from potential defenses raised by the Guarantor based on changes or concessions made to the Franchisee. This is a common practice in franchising to ensure the franchisor is protected.