factual

Is the Anago Personal Guaranty a separate document or an attachment to another agreement?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

een willing to execute the Franchise Agreement with SUBFRANCHISOR solely on SUBFRANCHISOR be personally obligated SUBFRANCHISOR (and with each other owner of SUBFRANCHISOR) for the performance of each and every obligation of SUBFRANCHISOR (and its owners) under the Franchise Agreement, any amendments or modifications to the Franchise Agreement, any extensions or renewals of the Franchise Agreement, and under each and every agreement ancillary to the Franchise Agreement that has been or hereafter may be entered by SUBFRANCHISOR with FRANCHISOR or with FRANCHISOR's affiliates related to the Franchise Agreement or the business conducted by SUBFRANCHISOR pursuant thereto (all of the aforementioned agreements are collectively referred to as the "Anago Agreements"). | You the condition that each owner of and jointly and severally liable with |

    1. 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.

    1. 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;
    • f. any and all rights to payments, indemnities and claims for reimbursement or subrogation that you may have against SUBFRANCHISOR arising from your execution of and performance under this Guaranty;
    • g. any defense based on any irregularity or defect in the creation of any of the Obligations or modification of the terms and conditions of performance thereof;
    • h. any defense based on the failure of FRANCHISOR or any other party to take, protect, perfect or preserve any right against and/or security granted by the SUBFRANCHISOR or any other party;
    • i. any and all other notices and legal or equitable defenses to which you may be entitled.
    1. Further Agreements and Understandings. You hereby consent and agree that:
    • a. Your direct and immediate liability under this Guaranty will be joint and several with SUBFRANCHISOR and each other GUARANTOR of SUBFRANCHISOR;
    • b. The death or incapacity of any GUARANTOR will not modify, amend or terminate this Guaranty;
    • c.

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 related to the Franchise Agreement. Specifically, the guarantor represents that the exhibits/attachments to the Franchise Agreement are accurate and complete. The guarantor also agrees to be personally bound by the provisions in the Franchise Agreement and other Anago Agreements, as if they were the subfranchisor or unit franchisee.

This means that as a prospective Anago franchisee, you should carefully review all attachments and exhibits to the Franchise Agreement, as these are incorporated into the Personal Guaranty. By signing the guaranty, you are not only vouching for the accuracy of these documents but also agreeing to be held personally liable for the obligations outlined within them. This is a significant commitment that extends your responsibility beyond the business entity and directly to your personal assets.

Furthermore, the guarantor waives several rights, including the right to require action against the subfranchisor or unit franchisee before being held liable. They also consent to the jurisdiction of specific courts for any actions related to the Guaranty. The guarantor also waives the right to a jury trial for any claims relating directly or indirectly to this Guaranty and/or the Anago Agreements. This underscores the importance of fully understanding the implications before signing, as it limits your legal recourse in case of disputes.

In the event that the franchise is assigned to a corporation where the franchisee owns all the stock, Anago requires a personal guaranty and agreement not to sell, assign, pledge, mortgage, or otherwise transfer or encumber the stock of the corporation. This ensures that the individual remains personally liable even when the franchise operates under a corporate structure. The spouse of each guarantor must also acknowledge and consent to the guaranty, binding the assets of the marital estate to the guarantor's performance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.