Does acceptance of partial payment affect the Floyds 99 Guaranty?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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- This liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which Franchisor or its affiliates may from time to time grant to Developer 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 shall in any way modify or amend this guaranty, which shall be continuing and irrevocable during the term of the Agreement, including renewals thereof; and
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, the acceptance of partial payment does not affect the liability under the guaranty. The guarantor's liability will not be diminished, relieved, or otherwise affected by the acceptance of any partial payment.
This means that even if Floyds 99 accepts a partial payment or performance from the developer, the guarantor remains fully liable for the remaining obligations. This protects Floyds 99 by ensuring that the guaranty remains in full force regardless of any partial payments or compromises they might agree to with the developer.
Furthermore, the guaranty remains continuing and irrevocable during the term of the agreement, including renewals. This provides Floyds 99 with long-term security, as the guaranty is not easily terminated or affected by changes in circumstances, such as extensions of time or credit granted to the developer.