Can the Engel & Volkers Franchise Agreement be amended without notice to the guarantor?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned hereby agree, furthermore, that without the consent of or notice to any of the undersigned and without affecting any of the obligations of the undersigned hereunder: (a) any term, covenant or condition of the Franchise Agreement may be amended, compromised, released or otherwise altered by Franchisor and Franchisee, and the undersigned do guarantee and promise to perform all the obligations of Franchisee under the Franchise Agreement as so amended, compromised, released or altered; (b) any guarantor of or party to the Franchise Agreement may be released, substituted or added; (c) any right or remedy under the Franchise Agreement, this Guarantee or any other instrument or agreement between Franchisor and Franchisee may be exercised, not exercised, impaired, modified, limited, destroyed or suspended; and, (d) Franchisor or any other person may deal in any manner with Franchisee, any of the undersigned, any party to the Franchise Agreement or any other person.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Franchise Agreement can be amended without notice to the guarantor. The guarantor agrees that any term, covenant, or condition of the Franchise Agreement may be amended, compromised, released, or otherwise altered by Engel & Volkers and the franchisee without notice to the guarantor.
This means that a guarantor's obligations will continue under the amended agreement. The guarantor is still responsible for the franchisee's obligations even if the agreement changes. This includes guaranteeing the performance of all obligations of the franchisee under the Franchise Agreement as amended, compromised, released, or altered.
This clause protects Engel & Volkers by ensuring that changes to the Franchise Agreement do not release the guarantor from their obligations. Prospective franchisees should carefully consider the implications for any guarantors, as they will remain bound by the guarantee even if the agreement is modified. It is advisable for potential guarantors to seek legal counsel to fully understand the scope of their obligations.