Will the Guarantor's liability be affected by any amendment of the Fly To Fit Franchise Agreement?
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 affected by any amendment to the Franchise Agreement. The Guaranty agreement specifies that the Guarantor's obligations remain even if the Franchise Agreement is modified. This means that if the Franchise Agreement between Fly To Fit and the franchisee is altered in any way, the Guarantor is still responsible for ensuring the franchisee fulfills their obligations as per the original agreement and any subsequent amendments.
Furthermore, the Guaranty covers any extensions of time, credit, or other allowances that Fly To Fit may grant to the franchisee. The Guarantor's liability is not reduced even if Fly To Fit accepts partial payments or performance, or compromises or releases any claims related to the Franchise Agreement. This provision protects Fly To Fit by ensuring that the Guarantor remains fully liable regardless of any leniency or modifications Fly To Fit might offer the franchisee.
This aspect of the Guaranty agreement is crucial for potential Guarantors to understand. By signing the Guaranty, they are committing to uphold the franchisee's obligations under all circumstances, including amendments to the Franchise Agreement. It is advisable for the Guarantor to seek legal counsel to fully understand the implications of this commitment before signing the Guaranty.