Can the liability under the Floyds 99 Guaranty be diminished by extensions of time granted to the Developer?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that:
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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;
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the liability under the Guaranty will not be diminished if Floyds 99 grants the Developer an extension of time. The owners of the Developer entity must sign a Guaranty and Assumption of Developer's Obligations.
The Guaranty includes several waivers and consents. The signers waive notice of acceptance, demand for payment, and protest of default. They also waive any right to require Floyds 99 to first bring action against the Developer before seeking recourse from the guarantors.
Specifically, the guaranty states that liability shall not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence that Floyds 99 may grant to the Developer. This includes accepting partial payments or compromising claims. The guaranty is continuing and irrevocable during the term of the agreement, including renewals.