When signing a promissory note with Anago, what right is being waived by both the franchisee and the franchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
- 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.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
Based on the 2025 FDD, the guarantor, who is agreeing to ensure the obligations of either the subfranchisor or the unit franchisee are met, waives several rights. These waivers are designed to protect Anago and its subfranchisors by streamlining the process of enforcing the agreements and collecting any debts owed.
The guarantor waives the right to require Anago or the subfranchisor to first bring an action against the subfranchisor or unit franchisee before seeking recourse from the guarantor. They also waive the defense of the statute of limitations, meaning they cannot argue that the time limit for bringing a legal claim has expired. Additionally, the guarantor gives up any rights to payments, indemnities, claims for reimbursement, or subrogation against the subfranchisor or unit franchisee that might arise from their performance under the guaranty.
Furthermore, the guarantor waives defenses based on irregularities or defects in the creation of the obligations, or any failure by Anago or other parties to protect or perfect any security granted by the subfranchisor or unit franchisee. They also waive various notices and legal or equitable defenses they might otherwise be entitled to. Finally, the guarantor expressly waives the right to a trial by jury for any claims related to the guaranty or the Anago Agreements.