For a Fat Shack franchise, what is the effect of amendments, modifications, deletions, or additions to the obligations guaranteed?

According to Fat Shack's 2025 Franchise Disclosure Document, if you sign a guaranty and assumption of franchisee's obligations, you waive the right to receive notice of any changes to those obligations. This waiver is detailed in Exhibit V to the Franchise Agreement and Exhibit B to the Development Agreement. Specifically, the guarantor waives notification of any amendment, modification, deletion, or addition to the terms and conditions of the guaranteed obligations. This means that as a guarantor, you could be held liable for obligations that have changed without your direct knowledge or consent.

This waiver is significant because it places the onus on the guarantor to stay informed about any changes to the Franchise Agreement or Development Agreement. It is a departure from standard business practices where parties are typically notified of changes to their contractual obligations. The guarantor's liability will not be diminished or affected by any amendment, assignment, or modification of the Development Agreement or any extension of time.

As a prospective Fat Shack franchisee, it is crucial to understand the full scope of this waiver before signing any guaranty. You should consult with a legal professional to assess the risks and ensure you have a system in place to monitor any changes to the underlying agreements. This includes maintaining open communication with the franchisee and the franchisor to stay abreast of any modifications or amendments. The guarantor is agreeing to be personally bound by and personally liable for any breach of every provision in the Development Agreement.