Is the guarantor's liability under the Anago Unit Franchise Agreement considered an absolute obligation?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- f.
Your liability hereunder will be construed as an absolute, unconditional, continuing and unlimited obligation without regard to the regularity, validity or enforceability of any of the Obligations, and without regard to whether any Obligation is limited, modified, voided, released or discharged in any proceeding under the United States Bankruptcy Code or any similar law affecting the rights of creditors generally;
- g.
Your liability hereunder will not be contingent or conditioned upon SUBFRANCHISOR's pursuit of any remedies against UNIT FRANCHISEE or any other person;
- h.
This Guaranty will continue in full force and effect for and as to any extension of or modification or amendment to the Unit Franchise Agreement and/or any other of the Anago Agreements and You waive notice of any and all such extensions, modifications or amendments;
- i.
Your liability hereunder will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence, or any waiver that SUBFRANCHISOR may from time to time grant to UNIT FRANCHISEE 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 SUBFRANCHISOR 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 Unit Franchise Agreement and so long as any performance is or may be owed under any of the Anago Agreements by UNIT FRANCHISEE or its owners and so long as SUBFRANCHISOR may have any cause of action against UNIT FRANCHISEE 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 under the Unit Franchise Agreement is construed as an absolute, unconditional, continuing, and unlimited obligation. This means the guarantor's responsibility is not affected by the regularity, validity, or enforceability of any obligations, or whether any obligation is limited, modified, voided, released, or discharged, even in bankruptcy proceedings.
This absolute obligation extends without regard to the regularity, validity or enforceability of any of the Obligations, and without regard to whether any Obligation is limited, modified, voided, released or discharged in any proceeding under the United States Bankruptcy Code or any similar law affecting the rights of creditors generally. The guarantor's liability is not contingent upon Anago pursuing remedies against the Unit Franchisee or any other person.
Furthermore, the guaranty remains in effect for any extension, modification, or amendment to the Unit Franchise Agreement or any other Anago agreements, and the guarantor waives notice of such changes. The guarantor's liability will not be diminished or affected by any extensions of time, credit, waivers, acceptance of partial payments, or compromise of claims that Anago may grant to the Unit Franchisee. This underscores the comprehensive and unwavering nature of the guarantor's commitment under the Anago Unit Franchise Agreement.