Does the compromise or release of any claims affect the Guarantor's liability to Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
**4.
Modification.** 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 Chocolate Fish 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 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the guarantor's liability is not affected by the compromise or release of any claims. The guarantor's liability will not be diminished, relieved, or otherwise affected by the compromise or release of any claims.
Specifically, the guarantor agrees that their liability will not be affected by any amendment of the Franchise Agreement, any extension of time or credit granted to the franchisee, or the acceptance of any partial payment. This means that even if Chocolate Fish Coffee makes concessions to the franchisee, the guarantor remains fully responsible for the franchisee's obligations.
This provision protects Chocolate Fish Coffee by ensuring that the guarantor remains liable for the franchisee's debts and obligations, even if the franchisor makes certain accommodations to the franchisee. For a prospective franchisee, this highlights the importance of carefully considering who will act as the guarantor and ensuring they fully understand the extent of their financial commitment and potential liability.