What is the purpose of the Anago Personal Guaranty?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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 Personal Guaranty ensures that the franchisee (or 'SUBFRANCHISOR' as referred to in the document) fulfills their financial and performance obligations under the Anago Agreements. By signing the Guaranty, the guarantor agrees to be personally bound by and liable for any breaches of the Franchise Agreement and other Anago Agreements, as if they were the franchisee themselves. This includes guaranteeing the prompt payment and performance of all debts, liabilities, and obligations of the franchisee to Anago.
The Personal Guaranty also includes several waivers by the guarantor, meaning they give up certain rights and defenses. These waivers include the right to require Anago to first bring an action against the franchisee before pursuing the guarantor, defenses related to irregularities in the creation of obligations, and various notices related to acceptance, demand for payment, and default. The guarantor also consents to the continuation of the guaranty even if there are extensions or modifications to the Unit Franchise Agreement, and their liability remains unconditional and unlimited.
Furthermore, the guarantor agrees that their debts and obligations to the franchisee are subordinated to the full payment and performance of the franchisee's obligations to Anago. The guarantor also acknowledges that disputes arising under the Guaranty will be submitted to arbitration, as outlined in the Unit Franchise Agreement. The Guaranty is governed by the laws of Florida, and the guarantor submits to the jurisdiction of the state or federal court closest to Anago's principal place of business.
Spousal consent is also required, binding the assets of the marital estate to the guarantor's performance. This consent acknowledges that the spouse is aware of and consents to the execution of the Guaranty by their spouse, ensuring that marital assets can be used to fulfill the obligations under the Guaranty. The guarantor also agrees not to divert assets to avoid debts covered by the Guaranty.