Does the Fly To Fit Guarantor agree that their liability will not be relieved by the release 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 release of any claims. The Guarantor explicitly agrees to this condition as part of the Guaranty and Non-Compete Agreement. This means that even if Fly To Fit releases certain claims against the franchisee, the Guarantor remains fully liable for the franchisee's obligations.
This provision protects Fly To Fit by ensuring that the Guarantor remains responsible for the franchisee's performance, regardless of any compromises or releases Fly To Fit might make with the franchisee. It is a standard practice in franchising to have such clauses to secure the franchisor's position. The Guarantor cannot use the argument that Fly To Fit has released some claims against the franchisee as a reason to reduce or eliminate their own liability.
For a prospective Fly To Fit franchisee, this highlights the importance of the Guarantor fully understanding their obligations. The Guarantor should be aware that their liability is not contingent on the franchisee's relationship with Fly To Fit at any given time. It is advisable for the Guarantor to seek independent legal counsel to fully understand the implications of this clause before signing the Guaranty and Non-Compete Agreement.