How must modifications to the Chocolate Fish Coffee franchise agreement be made to be effective?
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, modifications to the Guaranty agreement do not affect the guarantor's liability. The guarantor's liability will not be diminished, relieved, or otherwise affected by any amendment of the Franchise Agreement.
Additionally, the guarantor's liability remains intact regardless of any extensions of time, credit, or other leniency that Chocolate Fish Franchising may grant to the franchisee or any other person or entity. This also applies to the acceptance of any partial payment or performance, or the compromise or release of any claims.
This means that even if the underlying Franchise Agreement is changed, or if Chocolate Fish Coffee provides the franchisee with some form of accommodation, the guarantor's obligations remain unchanged. As a prospective franchisee, it is important to understand the full scope of any personal guarantees and how they interact with potential changes to the franchise agreement.