Does the Anago Personal Guaranty include any financial thresholds for the Guarantor's obligations?
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;
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the personal guaranty is an important legal document that holds the guarantor personally liable for the franchisee's obligations. The document states that the guarantor's liability is absolute, unconditional, continuing, and unlimited. This means there is no specific financial threshold that would limit the guarantor's obligations.
The guarantor agrees to guarantee the prompt payment and performance of all obligations of the subfranchisor or unit franchisee under the Anago Agreements. These obligations include all debts, liabilities, and costs of collection, including attorney's fees. The guarantor also agrees not to divert assets to avoid debts covered by the guaranty.
Furthermore, the guarantor waives several rights, including the right to require action against the subfranchisor or unit franchisee first, and any defenses based on irregularities or defects in the obligations. The guaranty remains in effect even with extensions or modifications to the franchise agreement. The guarantor's obligations are not contingent on Anago pursuing remedies against the subfranchisor or unit franchisee first. This comprehensive waiver and the unlimited nature of the guarantee underscore the significant financial risk assumed by the guarantor.