What amendments or modifications to the Fat Shack Franchise Agreement does the guarantor waive notice of?

According to Fat Shack's 2025 Franchise Disclosure Document, the guarantor is waiving their right to receive notice of any changes made to the Franchise Agreement. Specifically, the guarantor waives notice of any amendment, modification, deletion, or addition to any term or condition of the obligations guaranteed under the agreement. This waiver is part of the Guaranty and Assumption of Franchisee's Obligations, where the guarantor agrees to be personally bound by and liable for any breach of the Franchise Agreement.

This means that Fat Shack can make changes to the Franchise Agreement without informing the guarantor, and the guarantor will still be responsible for ensuring the franchisee complies with the altered terms. This includes financial obligations, performance standards, and any other aspect of the agreement. The guarantor's obligations remain in effect regardless of any changes to the agreement, potentially increasing their risk if the changes place additional burdens on the franchisee.

For a prospective Fat Shack franchisee, this highlights the importance of carefully considering who will act as a guarantor. The guarantor should be fully aware of the implications of waiving their right to notice and should have confidence in the franchisee's ability to meet their obligations under the Franchise Agreement, even if it is modified in the future. It is advisable for the guarantor to seek independent legal counsel to fully understand the risks involved before signing the guaranty.