Does the Cinnaholic Guaranty Agreement cover amendments or modifications to the Development Agreement?

According to Cinnaholic's 2025 Franchise Disclosure Document, the Guaranty Agreement does cover amendments or modifications to the Development Agreement. The guarantor agrees that any term, covenant, or condition of the Development Agreement may be amended, compromised, released, or otherwise altered by Cinnaholic and the Developer without notice to the guarantor. The guarantor promises to perform all obligations of the Developer under the Development Agreement as it has been amended or altered.

This means that if Cinnaholic and the developer (franchisee) change any part of the Development Agreement, the guarantor's obligations remain in full force. The guarantor is still responsible for ensuring the developer fulfills the amended terms, even without the guarantor's explicit consent or notification of the changes. This clause protects Cinnaholic by ensuring that the guarantee remains valid even if the Development Agreement is modified.

This is a significant point for anyone considering acting as a guarantor for a Cinnaholic franchisee. They must understand that their obligations could change if the Development Agreement is altered, and they will be bound by those changes. The guarantor should carefully consider the potential implications of such amendments and their ability to cover any increased or altered obligations.