According to the Anago franchise agreement, who is bound by the terms of the agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
c. agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Unit Franchise Agreement and each and every provision in any of the Anago Agreements, as if You were the UNIT FRANCHISEE.
The Term "Obligations" means the payment of all debts, liabilities and obligations of UNIT FRANCHISEE to SUBFRANCHISOR arising under the Anago Agreements, whether direct, indirect, absolute, contingent, matured or un-matured, extended or renewed, wherever and however incurred, together with all costs of collection, compromise and enforcement, including reasonable attorneys' fees, and the prompt performance of each and every covenant, Agreement and condition set forth in any of the Anago Agreements.
3. Waivers by GUARANTOR. You hereby waive:
- a. acceptance and notice of acceptance by SUBFRANCHISOR of the foregoing guaranty;
- b. notices of demand for payment of any indebtedness or nonperformance by UNIT FRANCHISEE of any indebtedness or nonperformance by UNIT FRANCHISEE of any of the Obligations;
- c. presentment or protest of any instrument and notice thereof; and Notice of Default or intent to accelerate with respect to the indebtedness or nonperformance of any of the Obligations;
- d. any right You may have to require that an action be brought against UNIT FRANCHISEE or any other person as a condition of liability;
- e. the defense of the statute of limitations in any action hereunder or for the collection or performance of any Obligation;
- f. any and all rights to payments, indemnities and claims for reimbursement or subrogation that You may have against UNIT FRANCHISEE arising from Your execution of and performance under this Guaranty;
- g. any defense based on any irregularity or defect in the creation of any of the Obligations or modification of the terms and conditions of performance thereof;
- h. any defense based on the failure of SUBFRANCHISOR or any other party to take, protect, perfect or preserve any right against and/or security granted by the UNIT FRANCHISEE or any other party; and
- i. any and all other notices and legal or equitable defenses to which You may be entitled.
4. Further Agreements and Understandings. You hereby consent and agree that:
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to the 2025 Anago Franchise Disclosure Document, the Guarantor is bound by the terms of the franchise agreement. Specifically, the guarantor agrees to be personally bound by and liable for any breaches of the Unit Franchise Agreement and any Anago Agreements, acting as if they were the Unit Franchisee. This obligation ensures that the financial and operational responsibilities of the franchisee are upheld.
The guarantor's commitment includes guaranteeing the prompt payment and performance of all obligations of the Unit Franchisee to the Subfranchisor under the Anago Agreements. These obligations encompass all debts, liabilities, and costs associated with collection, enforcement, and attorney's fees. The guarantor also agrees not to divert assets to avoid debts covered by the guaranty, reinforcing their financial responsibility.
To ensure the enforceability of the guaranty, the guarantor waives certain rights, including acceptance and notice of acceptance of the guaranty, notices of demand for payment, and defenses related to irregularities or defects in the obligations. This waiver streamlines the process for the Subfranchisor to pursue the guarantor in case of the Unit Franchisee's non-compliance. The guarantor also consents to submit disputes to arbitration as outlined in the Unit Franchise Agreement, ensuring a structured and legally binding resolution process.
This arrangement provides Anago with an additional layer of security, ensuring that there is a responsible party who is fully committed to fulfilling the obligations under the franchise agreement. For a prospective franchisee, understanding the implications and requirements of the guarantor is crucial, as it directly affects the financial and operational stability of the franchise.