Can the Clean Your Dirty Face Guaranty be modified by an extension of time granted to the Franchisee?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned waives: (1) acceptance and notice of acceptance by Franchisor of the foregoing undertakings; (2) notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed; (3) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations guaranteed; (4) any right he or she may have to require that an action be brought against Franchisee or any other person as a condition of liability. Each of the undersigned consents and agrees that: (1) his or her direct and immediate liability under this Guaranty shall be joint and several; (2) he or she shall render any payment or performance required under the Agreement on demand if Franchisee fails or refuses punctually to do so; (3) liability shall not be contingent or conditioned on pursuit by Franchisor of any remedies against Franchisee or any other person; (4) liability shall not be diminished, relieved or affected by any extension of time, credit or other indulgence which Franchisor may grant to Franchisee or to any other person, including the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this Guaranty, which shall be continuing and irrevocable during the term of the Agreement; (5) Guarantor is bound by the restrictive covenants, confidentiality provisions, and indemnification provisions contained in the Agreement; and (5) at our request, Guarantor provides the updated financial information to us as may be reasonably necessary to demonstrate his or her ability to satisfy the obligations of the franchise owners under the Agreement.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, the Guaranty is not affected or diminished by any extension of time granted to the franchisee. The guarantor's liability remains intact even if Clean Your Dirty Face offers the franchisee more time, credit, or other leniency.
Specifically, the guarantor consents and agrees that their liability will not be diminished, relieved, or affected by any extension of time, credit, or other indulgence that Clean Your Dirty Face may grant to the franchisee. This includes accepting partial payment or performance or compromising or releasing any claims. These actions do not modify or amend the Guaranty, which remains continuous and irrevocable during the term of the agreement.
This clause protects Clean Your Dirty Face by ensuring that the Guaranty remains valid and enforceable regardless of any accommodations they might make for the franchisee. It also clarifies that the guarantor's obligations are independent of the franchisee's, providing Clean Your Dirty Face with a direct avenue for recourse should the franchisee default, without needing to first exhaust remedies against the franchisee.