Does the Anago Guarantor waive any defense based on irregularity or defect in the creation of any of the obligations?

According to Anago's 2025 Franchise Disclosure Document, the Guarantor does waive any defense based on irregularity or defect in the creation of any of the obligations. This means that the person guaranteeing the Anago franchisee's obligations cannot argue that the obligations themselves were improperly created as a reason to avoid fulfilling the guarantee. This waiver strengthens Anago's position by limiting the guarantor's ability to challenge the validity of the underlying debt or agreement.

Specifically, the guarantor is agreeing to be bound by all provisions in the Unit Franchise Agreement and any Anago Agreements as if they were the franchisee. The term 'Obligations' is defined broadly to include all debts, liabilities, and obligations of the franchisee to the subfranchisor, including costs of collection and attorney's fees. This comprehensive definition ensures that the guarantor's responsibility extends to all financial and performance-related aspects of the franchise agreement.

In addition to waiving defenses related to the creation of obligations, the guarantor also waives other rights, such as the right to require Anago to first pursue action against the franchisee, defenses related to the statute of limitations, and rights to payments or claims against the franchisee. These waivers collectively limit the guarantor's ability to avoid their obligations under the guaranty, making the guaranty a more secure form of protection for Anago.

Prospective Anago franchisees should carefully review these guarantor waivers with their legal counsel to fully understand the scope of the guarantor's responsibilities and the limitations on their defenses. This is a standard practice in franchising to ensure that the franchisor has recourse to a reliable source of funds in case the franchisee defaults.