Can amendments to the Fat Shack Franchise Agreement affect the guarantor's liability?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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- His or her liability hereunder will not be diminished, relieved or otherwise affected by any amendment, assignment or modification of the Franchise Agreement or any extension of time, credit or other indulgence which FSI may from time to time grant to Franchisee or to any other person, including without limitation the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which will in any way modify or amend this guaranty, which shall be continuing and irrevocable during the term of the Franchise Agreement, including renewals thereof.
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- FSI may, at its option, without notice to or further consent of him or her, take any of the following actions:
- (iii) amend, modify, delete, or add any term or condition of or to any of the obligations hereby guaranteed, which may include the creation of new obligations.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a guarantor's liability is not diminished by amendments to the Franchise Agreement. The guaranty agreement states that the guarantor's liability will not be affected by any amendment, assignment, or modification of the Franchise Agreement, or any extension of time, credit, or other allowance that Fat Shack may grant to the franchisee. This includes accepting partial payments or compromising claims. The guaranty remains continuing and irrevocable during the term of the Franchise Agreement, including renewals.
Furthermore, Fat Shack has the option, without notifying or seeking further consent from the guarantor, to take actions such as retaining the primary or secondary liability of another party, releasing or compromising the liability of another guarantor, or amending the obligations guaranteed, including creating new ones.
This means that as a prospective Fat Shack franchisee, any individual acting as a guarantor on your behalf should understand that their obligations are unlikely to be reduced or altered, even if the original terms of the Franchise Agreement change. The guarantor remains bound by the agreement's terms throughout its duration, and Fat Shack has considerable latitude to modify the agreement without impacting the guarantor's responsibility.