Under the Anago Guaranty, is the guarantor's liability joint and several with the Unit Franchisee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
4. Further Agreements and Understandings. You hereby consent and agree that:
- a. Your direct and immediate liability under this Guaranty will be joint and several with UNIT FRANCHISEE and each other GUARANTOR of UNIT FRANCHISEE;
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if you act as a guarantor under the Anago Guaranty, your liability is joint and several with the Unit Franchisee. This means that Anago can pursue you and the Unit Franchisee together or separately for the full amount of the obligation.
This arrangement provides Anago with significant flexibility in recovering any debts or ensuring performance under the franchise agreement. As a guarantor, you cannot require Anago to first pursue the Unit Franchisee or any other guarantor before seeking recourse from you. Your obligation is absolute, unconditional, continuing, and unlimited, regardless of the validity or enforceability of the underlying obligations of the Unit Franchisee.
Furthermore, as a guarantor, you waive several rights, including the right to receive notices of acceptance, demand for payment, or nonperformance by the Unit Franchisee. You also waive any rights to payments, indemnities, or claims for reimbursement from the Unit Franchisee arising from your performance under the Guaranty. This comprehensive waiver underscores the significant responsibility and potential financial risk assumed by the guarantor.
Prospective franchisees considering acting as a guarantor should carefully evaluate the financial stability and business acumen of the Unit Franchisee. Given the broad scope of the Guaranty and the waivers involved, it is crucial to fully understand the potential liabilities and seek legal counsel to assess the risks involved before agreeing to act as a guarantor for an Anago franchise.