Will the Guarantor's liability be affected by the acceptance of any partial payment by Crave Cookies Franchising?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Crave Cookies 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 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the Guarantor's liability will not be diminished, relieved, or otherwise affected by the acceptance of any partial payment by Crave Cookies Franchising. This is explicitly stated in the Guaranty agreement.
This provision protects Crave Cookies by ensuring that the Guarantor remains fully liable for the franchisee's obligations, even if Crave Cookies accepts partial payments or makes compromises on outstanding debts. The guarantor cannot claim that their obligations are reduced because Crave Cookies accepted less than the full amount owed by the franchisee.
For a prospective Crave Cookies franchisee, this means that if a guarantor is required for the franchise agreement, that guarantor's liability remains intact regardless of any partial payments or compromises Crave Cookies might make with the franchisee. This is a standard clause in franchise agreements to protect the franchisor's financial interests.