Does the Fly To Fit Guarantor agree that their liability will not be relieved by the compromise of any claims?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- **4.
Modification.** Guarantor agrees that Guarantor's liability hereunder shall not be diminished, relieved or otherwise affected by (a) any amendment of the Franchise Agreement, (b) any extension of time, credit or other indulgence which Fly To Fit Franchise may from time-totime grant to Franchisee or to any other person or entity, or (c) the acceptance of any partial payment or performance or the compromise or release of any claims.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Guarantor's liability will not be diminished, relieved, or otherwise affected by the compromise or release of any claims. This is outlined in the Guaranty and Non-Compete Agreement that the Guarantor executes in favor of Fly To Fit Franchise, LLC.
This provision means that even if Fly To Fit reaches a compromise or releases claims related to the Franchise Agreement, the Guarantor remains fully liable for the obligations they guaranteed. This could include financial obligations or other performance requirements outlined in the Franchise Agreement. The guarantor cannot use the compromise or release of claims as a reason to reduce or eliminate their own liability.
For a prospective Fly To Fit franchisee, this highlights the importance of understanding the full scope of the Guaranty and Non-Compete Agreement. Anyone considering acting as a guarantor should carefully evaluate the potential liabilities and ensure they are comfortable with the level of risk they are assuming, as their obligations are not lessened even if Fly To Fit makes concessions with the franchisee.