Can the terms of the Cinnaholic Franchise Agreement be amended without the guarantor's consent or notice?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned hereby agree that without the consent of or notice to any of the undersigned and without affecting any of the obligations of the undersigned hereunder, any term, covenant or condition of the Franchise Agreement may be amended, compromised, released or otherwise altered by Franchisor and the Franchisee and the undersigned do guarantee and promise to perform all of the obligations of the Franchisee under the Franchise Agreement as so amended, compromised, released or altered.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the terms of the Franchise Agreement can be amended without the consent of or notice to the guarantor. The guarantor agrees to guarantee the franchisee's obligations even if the agreement is amended, compromised, released, or altered by Cinnaholic and the franchisee.
This means that a guarantor's obligations remain in full effect regardless of any changes made to the Franchise Agreement. The guarantor is still responsible for the franchisee's performance under the altered agreement, even without prior notification or approval of the changes.
This clause protects Cinnaholic by ensuring that the guarantee remains valid even if the Franchise Agreement is modified. However, it places a significant risk on the guarantor, who could be held responsible for obligations under a modified agreement they did not explicitly agree to. Prospective guarantors should carefully consider this provision and seek legal advice to understand the full extent of their obligations.