Does the Anago Personal Guaranty specify any geographic limitations on the subfranchise territory?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
c. agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Unit Franchise Agreement and each and every provision in any of the Anago Agreements, as if You were the UNIT FRANCHISEE.
The Term "Obligations" means the payment of all debts, liabilities and obligations of UNIT FRANCHISEE to SUBFRANCHISOR arising under the Anago Agreements, whether direct, indirect, absolute, contingent, matured or un-matured, 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.
You hereby irrevocably submit to the jurisdiction of the (enter applicable court in Your State) (or its successor) in and for Xxxx County, State, and any appellate court thereof in any action or proceeding arising out of or relating, directly or indirectly, to the Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to the 2025 Anago FDD, the personal guaranty does not specify geographic limitations on the subfranchise territory. However, the guarantor agrees to be personally bound by and liable for the breach of every provision in the Franchise Agreement and any of the Anago Agreements as if they were the subfranchisor. The definition of "Obligations" includes all debts, liabilities, and obligations of the subfranchisor to Anago arising under the Anago Agreements, regardless of where or how they were incurred. This suggests that the guaranty covers all obligations, without explicit geographic limitations.
The guarantor also consents to the jurisdiction of a specific court within their state, indicating a geographic legal venue for disputes related to the guaranty. Specifically, the guarantor submits to the jurisdiction of the applicable court in their state, within a specified county, for any action arising out of or relating to the Guaranty. This clause establishes the legal venue for resolving disputes related to the guaranty, implying that the guarantor's obligations are enforceable within that jurisdiction.
While the FDD excerpts do not explicitly define geographic limitations on the subfranchise territory within the personal guaranty, the legal jurisdiction clause and the comprehensive nature of the obligations covered suggest that the guaranty is enforceable within the specified jurisdiction, regardless of where the obligations were initially incurred. A prospective franchisee should consult with a legal professional to fully understand the implications of the personal guaranty and its potential geographic limitations.