Is the Anago Guarantor's liability diminished by any extension of time granted to the Subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Your liability hereunder will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence, or any waiver that FRANCHISOR may from time to time grant to SUBFRANCHISOR or to any other person, including without limitation, the acceptance of any partial payment or performance, or the compromise or release of any claims (including the release of other owners or guarantors), or the taking of any action by FRANCHISOR which may have the effect of increasing your obligations, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the term of the Franchise Agreement and so long as any performance is or may be owed under any of the Anago Agreements by SUBFRANCHISOR or its owners and so long as FRANCHISOR may have any cause of action against SUBFRANCHISOR or its owners; and
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Guarantor's liability will not be diminished if an extension of time is granted to the Subfranchisor. The Guaranty will remain in full effect regarding any time extensions, credit, or waivers that Anago may grant to the Subfranchisor. This includes accepting partial payments or compromising claims.
This means that as a Guarantor, your obligations remain unchanged even if Anago provides the Subfranchisor with more lenient terms or additional time to meet their obligations. The Guaranty is designed to be continuing and irrevocable, lasting for the duration of the Franchise Agreement and as long as any performance is owed by the Subfranchisor under the Anago Agreements.
This clause protects Anago by ensuring that the Guarantor's commitment remains firm regardless of any adjustments made to the Subfranchisor's obligations. As a prospective franchisee, understanding this aspect of the Guaranty is crucial, as it highlights the extent of your responsibility and the limited circumstances under which your liability can be reduced.