What obligations of the Anago Subfranchisor are the Guarantor(s) personally obligated for under the Franchise Agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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- GUARANTOR'S Covenants, Representations and Guaranty. In consideration of and as an inducement to the execution of the Franchise Agreement by FRANCHISOR, you hereby personally, irrevocably and unconditionally:
- a. represent and warrant to FRANCHISOR that the exhibits/attachments to the Franchise Agreement are accurate and complete;
- b. guarantee the prompt payment and performance of all Obligations (as hereinafter defined) of SUBFRANCHISOR under the Anago Agreements;
- c. agree to be personally bound by, and personally liable for the breach of, each and every provision in the Franchise Agreement and each and every provision in any of the Anago Agreements, as if you were the SUBFRANCHISOR; and
d. agree not to divert any assets to other parties in order to avoid any debt covered by this Guaranty.
The term "Obligations" means the payment of all debts, liabilities and obligations of SUBFRANCHISOR to FRANCHISOR arising under the Anago Agreements, whether direct, indirect, absolute, contingent, matured or unmatured, 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.
Waivers by GUARANTOR.
You hereby waive:
a. acceptance and notice of acceptance by FRANCHISOR of the foregoing Guaranty;
b. notice of demand for payment of any indebtedness or nonperformance by SUBFRANCHISOR of any indebtedness or nonperformance by SUBFRANCHISOR 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 SUBFRANCHISOR 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;
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Guarantor is personally obligated for the Subfranchisor's duties under the Franchise Agreement. The Guarantor guarantees the prompt payment and performance of all obligations of the Subfranchisor under the Anago Agreements. This includes all debts, liabilities, and obligations arising under the Anago Agreements, encompassing direct and indirect financial responsibilities, costs of collection, and attorney's fees.
The Guarantor agrees to be personally bound by and liable for any breach of the Franchise Agreement and any of the Anago Agreements, as if they were the Subfranchisor. This extends to every provision within these agreements. The Guarantor also agrees not to divert assets to avoid debts covered by the guaranty.
Furthermore, the Guarantor's obligations are absolute, unconditional, continuing, and unlimited. This means the Guarantor's liability is not contingent on Anago pursuing remedies against the Subfranchisor first. The Guarantor remains liable even if the Subfranchisor's obligations are modified or discharged in bankruptcy proceedings. The Guaranty remains in effect for any extensions, modifications, or amendments to the Franchise Agreement or other Anago Agreements, and the Guarantor waives notice of such changes.