For Jersey Mikes, is the Guaranty affected by changes to the terms of the Note?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
of any right by Holder shall be effective unless in writing and signed by Holder (or a duly authorized officer thereof, if applicable). Guarantors guarantee that the obligations of the Maker under the Note will be paid strictly in accordance with its terms, regardless of any law, regulation or order now or hereafter in effect in any jurisd iction affecting any of such terms or the rights of the Holder with respect thereto. The liability of the Guarantors under this Guaranty shall be absolute and unconditional irrespective of any change in the time, manner or place of payment of, or in any other term of, all or any of the obligations of the Maker under the Note, or any other amendment or waiver of or any consent to departure from the Note.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the Guaranty provided by the Guarantors is not affected by changes to the terms of the Note. The Guaranty covers the Maker's obligations under the Note, regardless of any changes to payment terms or other amendments to the Note. This means that even if the terms of the loan are modified, the Guarantors remain responsible for ensuring the Maker fulfills their financial obligations.
The Guaranty is described as absolute and unconditional, meaning it is not subject to external factors or agreements, except as explicitly stated within the Guaranty itself. The Guarantors' liability remains in effect irrespective of any changes to the payment schedule, manner, or location, or any other term related to the Maker's obligations under the Note. This protects Jersey Mike's (the Holder) by ensuring that the Guarantors' obligation to cover the debt remains intact even if the original terms of the Note are altered.
Furthermore, any modifications or amendments to the Guaranty itself require a written agreement signed by the Holder to be effective. This provision ensures that any changes to the Guaranty are formally documented and agreed upon by Jersey Mike's, preventing any unilateral changes or misunderstandings. The Guarantors guarantee that the Maker's obligations will be paid strictly in accordance with the Note's terms, regardless of any laws or regulations affecting those terms or the Holder's rights. This clause reinforces the comprehensive and unwavering nature of the Guaranty, providing Jersey Mike's with a high level of assurance regarding the repayment of the debt.