Under the Anago Unit Franchise Agreement, is the Guaranty continuing and irrevocable during the term of the Unit Franchise Agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Your liability hereunder will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence, or any waiver that SUBFRANCHISOR may from time to time grant to UNIT FRANCHISEE or to any other person, including without limitation, the acceptance of any partial payment or performance, or the compromise or release of any claims (including the release of other owners or guarantors), or the taking of any action by SUBFRANCHISOR which may have the effect of increasing Your obligations, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the Term of the Unit Franchise Agreement and so long as any performance is or may be owed under any of the Anago Agreements by UNIT FRANCHISEE or its owners and so long as SUBFRANCHISOR may have any cause of action against UNIT FRANCHISEE or its owners; and
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Guaranty associated with the Unit Franchise Agreement is designed to be both continuing and irrevocable during the term of the agreement. This means that the guarantor's obligations persist throughout the entire duration of the Unit Franchise Agreement and cannot be revoked. This ensures that Anago has a consistent and reliable guarantee for the franchisee's performance and adherence to the agreement.
Specifically, the Guaranty remains in full effect even if there are extensions, modifications, or amendments to the Unit Franchise Agreement or any other Anago agreements. The guarantor waives any right to be notified of such changes. Furthermore, the guarantor's liability is not affected by any leniency Anago might extend to the franchisee, such as granting extensions of time or accepting partial payments. These actions do not modify or amend the Guaranty, reinforcing its continuous and irrevocable nature.
This provision is significant for potential Anago franchisees because it clarifies the extent and duration of the guarantor's commitment. Individuals considering acting as guarantors should understand that their responsibility is not limited to the initial terms of the agreement but extends to any modifications or extensions. Moreover, the guarantor's obligations remain in place as long as the franchisee owes any performance under the Anago Agreements or as long as Anago has any cause of action against the franchisee or its owners. This long-term commitment should be carefully considered before entering into the Guaranty.