Under what conditions regarding insolvency or bankruptcy of the Anago Guarantor can obligations become immediately due and payable?

According to Anago's 2025 Franchise Disclosure Document, if the Guarantor dies, becomes incapacitated or insolvent, or makes a general assignment for the benefit of creditors, or if a proceeding under the United States Bankruptcy Code or any similar law affecting the rights of creditors generally is filed or commenced by, against, or in respect of the Guarantor, any and all obligations of the Guarantor shall, at Anago's option, immediately become due and payable without notice. This means that if the guarantor experiences financial distress or legal proceedings related to insolvency, Anago has the right to demand immediate payment of all outstanding obligations.

This provision protects Anago by allowing them to quickly recover any outstanding debts if the guarantor's financial situation becomes unstable. It also ensures that Anago is not held back by lengthy legal processes or the uncertainty of bankruptcy proceedings. However, it places a significant burden on the guarantor, who could be forced to pay immediately upon the occurrence of any of these events, regardless of their ability to pay at that specific time.

For a prospective Anago franchisee, this highlights the importance of carefully considering the financial stability of any individual acting as a guarantor. The franchisee should ensure that the guarantor fully understands the implications of this clause and has the financial resources to meet these obligations if such events occur. It is also important to note that this clause is at Anago's option, meaning they may choose not to enforce immediate payment, but the possibility remains a significant risk for the guarantor.