Can the Pearce Bespoke personal guaranty be diminished by any extension of time granted to the franchisee?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the personal guaranty is not affected by any extensions of time granted to the franchisee. The guarantor's liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence that Pearce Bespoke may grant to the franchisee. This includes accepting partial payments or performance, or compromising or releasing claims.

This provision ensures that the guarantor remains fully liable for the franchisee's obligations, even if Pearce Bespoke provides the franchisee with some flexibility or leniency in meeting their obligations. The guaranty remains continuing and irrevocable during and after the terms of the Franchise Documents, as they may be amended or renewed, until the franchisee's duties and obligations to Pearce Bespoke are fully discharged and satisfied.

This type of clause is common in franchise agreements to protect the franchisor's interests. It prevents a guarantor from claiming that their obligations are reduced or eliminated because the franchisor showed some flexibility to the franchisee. Prospective Pearce Bespoke franchisees should understand that the personal guaranty is a significant commitment that remains in effect despite any modifications or indulgences granted to the franchisee.