Under the Anago Personal Guaranty, who is considered the 'GUARANTOR'?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
een willing to execute the Franchise Agreement with SUBFRANCHISOR solely on SUBFRANCHISOR be personally obligated SUBFRANCHISOR (and with each other owner of SUBFRANCHISOR) for the performance of each and every obligation of SUBFRANCHISOR (and its owners) under the Franchise Agreement, any amendments or modifications to the Franchise Agreement, any extensions or renewals of the Franchise Agreement, and under each and every agreement ancillary to the Franchise Agreement that has been or hereafter may be entered by SUBFRANCHISOR with FRANCHISOR or with FRANCHISOR's affiliates related to the Franchise Agreement or the business conducted by SUBFRANCHISOR pursuant thereto (all of the aforementioned agreements are collectively referred to as the "Anago Agreements"). | You the condition that each owner of and jointly and severally liable with |
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- GUARANTOR'S Covenants, Representations and Guaranty. In consideration of and as an inducement to the execution of the Franchise Agreement by FRANCHISOR, you hereby personally, irrevocably and unconditionally:
- a. represent and warrant to FRANCHISOR that the exhibits/attachments to the Franchise Agreement are accurate and complete;
- b. guarantee the prompt payment and performance of all Obligations (as hereinafter defined) of SUBFRANCHISOR under the Anago Agreements;
- c.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the 'GUARANTOR' in the context of the Personal Guaranty is 'you'. This means the person signing the guaranty is agreeing to be personally responsible for the financial obligations and performance of either the SUBFRANCHISOR or the UNIT FRANCHISEE, depending on which agreement the guaranty applies to. This individual is essentially promising to cover the debts and responsibilities of the franchisee to Anago.
This personal guarantee has significant implications for a prospective Anago franchisee. By signing it, the guarantor's personal assets become at risk if the business fails to meet its financial obligations. The guarantor is also waiving certain rights, such as requiring Anago to first pursue action against the subfranchisor or unit franchisee before seeking recourse from the guarantor. The document specifies that the guarantor's obligations are absolute, unconditional, continuing, and unlimited, meaning their liability isn't contingent on Anago pursuing other remedies or if the obligations of the franchisee are modified or discharged in bankruptcy proceedings.
Furthermore, the guarantor consents to the jurisdiction of specific courts and waives the right to a jury trial in any disputes related to the guaranty or the Anago Agreements. The guaranty remains in effect even if the franchise agreement is extended, modified, or amended, and the guarantor waives notice of these changes. The document also states that any debts or obligations Anago owes to the guarantor are subordinated to the full payment and performance of the obligations under the Anago Agreements.
In summary, the personal guaranty is a critical document that prospective Anago franchisees and their guarantors must carefully review and understand. It places significant personal financial risk on the guarantor and includes waivers of important legal rights. It is advisable to seek legal counsel to fully understand the implications before signing the guaranty.