Under what conditions can the Face Foundrie agreement be amended or changed?

According to the 2025 Face Foundrie FDD, the agreement can be modified or altered without notice to the guarantor under certain conditions. Specifically, Face Foundrie may extend, modify, or release any indebtedness or obligation of the Area Developer without informing the guarantor. The guarantor waives notice of these changes and agrees to remain bound by any and all such amendments to the agreement.

This clause primarily affects individuals who sign a guaranty, ensuring the Area Developer fulfills their obligations. By signing the guaranty, the guarantor agrees to be bound by any changes Face Foundrie makes to the agreement with the Area Developer, even without prior notification. This could include changes to payment schedules, debt amounts, or other obligations.

For a prospective Face Foundrie franchisee, this means that if they require a guarantor for their agreement, the guarantor should be fully aware that the terms of the agreement can change without their knowledge, and they will still be responsible for the Area Developer's obligations under the amended agreement. This is a significant risk for the guarantor, as they could be held liable for obligations they were not initially aware of. It is advisable for potential guarantors to seek legal counsel to fully understand the implications of this clause before signing the guaranty.

This type of clause is not uncommon in franchise agreements, as it provides the franchisor with flexibility in managing the relationship with the franchisee. However, it places a significant burden on the guarantor, who must be prepared to accept changes to the agreement without prior notice. Therefore, anyone considering becoming a guarantor for a Face Foundrie Area Developer should carefully consider the potential risks and seek professional advice.