Are the terms of the Anago franchise agreement binding upon the legal representatives of the parties involved?
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.
3. Waivers by GUARANTOR. You hereby waive:
- a. acceptance and notice of acceptance by SUBFRANCHISOR of the foregoing guaranty;
- b. notices of demand for payment of any indebtedness or nonperformance by UNIT FRANCHISEE of any indebtedness or nonperformance by UNIT FRANCHISEE 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 UNIT FRANCHISEE 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 UNIT FRANCHISEE 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 SUBFRANCHISOR or any other party to take, protect, perfect or preserve any right against and/or security granted by the UNIT FRANCHISEE or any other party; and
- i. any and all other notices and legal or equitable defenses to which You may be entitled.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the franchise agreement includes a section addressing a guarantor's obligations. Specifically, if a guarantor agrees to the terms, they are personally bound by the provisions outlined in the Anago agreements. This means the guarantor is responsible for the franchisee's debts, liabilities, and obligations to the subfranchisor.
The guarantor also agrees to be personally liable for any breaches of the franchise agreement, as if they were the franchisee themselves. This extends to all provisions within the Anago agreements. The guarantor also agrees not to divert assets to avoid debts covered by the guaranty.
Furthermore, the guarantor waives certain rights, including the right to require action against the franchisee before being held liable. They also waive rights related to notices of acceptance, demands for payment, and defenses related to irregularities in the obligations. This indicates a comprehensive commitment from the guarantor to ensure the franchisee's obligations are met, providing Anago with an additional layer of security.