Can the guarantor's liability be diminished by any extension of time or credit under the Hydrodog Guaranty?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor hereby consents and agrees that: (a) their direct and immediate liability under this Guaranty isjoint and several; (b) you must render any payment or performance required under the Agreement upon demand if the Business Entity fails orrefuses punctually to do so; (c) your liability will not be contingent or conditioned upon our pursuit of any remedies against the Business Entity or any other person; (d) your liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other
indulgence which we may periodically grant to the Business Entity or to any other person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims and no such indulgence will in any way modify or amend this Guaranty; and (e) this Guaranty will continue and remain irrevocable throughout the term of the Agreement and, if required by the Agreement, will persist even after its termination or expiration.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the liability of a guarantor will not be diminished if Hydrodog grants an extension of time or credit to the business entity. Each guarantor agrees that their liability will not be affected by any extension of time, credit, or other indulgence that Hydrodog may periodically grant to the business entity or any other person. This includes the acceptance of any partial payment or performance, or the compromise or release of any claims.
This means that if Hydrodog allows the franchisee more time to pay or provides them with credit, the guarantor's obligation to cover the debt remains unchanged. The guarantor cannot claim that their liability is reduced because Hydrodog was lenient with the franchisee. This provision protects Hydrodog by ensuring that the guaranty remains in full effect regardless of any accommodations they make to the franchisee.
This is a standard practice in franchising, as franchisors want to ensure that they have a solid guarantee regardless of the financial arrangements they make with the franchisee. Prospective Hydrodog franchisees should carefully consider the implications of this clause before signing the Guaranty, as they will be responsible for the full amount guaranteed even if the franchisor provides some flexibility to the franchisee.