Can the guarantor's liability for a Fat Shack franchise be affected by amendments to the Development Agreement?

According to Fat Shack's 2025 Franchise Disclosure Document, a guarantor's liability is not affected by amendments to the Development Agreement. The guaranty agreement explicitly states that the guarantor waives notice of any changes to the agreement. This means that even if the Development Agreement is modified, the guarantor remains responsible for the franchisee's obligations as originally agreed.

Specifically, the guarantor waives the right to be notified of any "amendment, modification, deletion or addition of any term or condition of or to any of the obligations hereby guaranteed." This waiver is significant because it prevents the guarantor from claiming that a change in the Development Agreement altered their obligations. The guarantor is essentially agreeing to be bound by the original terms, regardless of any future changes made between Fat Shack and the franchisee.

This provision protects Fat Shack by ensuring that the guaranty remains in effect even if the Development Agreement is altered. However, it places a significant burden on the guarantor, who should carefully consider the potential implications of waiving their right to notice of any changes. A prospective guarantor should seek legal counsel to fully understand the scope of this waiver and its potential impact on their liability.