Does the Anago Personal Guaranty outline any prohibited actions for the Guarantor?

According to Anago's 2025 Franchise Disclosure Document, the Personal Guaranty specifies one prohibited action for the guarantor. The guarantor agrees not to divert any assets to other parties in order to avoid any debt covered by the Guaranty. This provision ensures that the guarantor does not attempt to shield assets from being used to satisfy the obligations under the franchise agreement.

This restriction is a standard practice in franchising, as franchisors seek to ensure that personal guarantors remain financially responsible for the debts and obligations of the franchisee. By preventing the diversion of assets, Anago aims to protect its financial interests and the integrity of the franchise system.

Prospective Anago franchisees who are asked to provide a personal guaranty should carefully consider this provision and understand its implications. They should be aware that any attempt to move assets to avoid debts covered by the guaranty could result in legal action and further financial penalties.