Under the Anago assignment agreement, are the obligations of the Assignor and Assignee joint, several, or both?

According to Anago's 2025 Franchise Disclosure Document, the obligations of the Assignor and Assignee under the assignment agreement are joint and several. This means that both parties share responsibility for fulfilling the obligations outlined in the agreement, and each party is individually liable for the full amount of the obligations.

For a prospective Anago franchisee, this has significant implications. If the Assignee fails to meet their obligations, the Assignor remains fully responsible, and vice versa. Anago can pursue either party for the full amount owed or for complete performance, regardless of the other party's actions. This provides Anago with a greater degree of security and flexibility in enforcing the terms of the assignment agreement.

This type of liability structure is common in franchising to protect the franchisor's interests. Franchisees should carefully review the assignment agreement and understand the full extent of their obligations and potential liabilities before signing. It is advisable to seek legal counsel to fully understand the implications of joint and several liability in the context of the Anago franchise agreement.