Does the Annex Brands Continuing Personal Guarantee allow the Guarantor's obligations to be transferred?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Each member, partner, owner or shareholder of Franchisee at any time during the term of the Franchise will execute a Continuing Personal Guarantee (Attachment 2) undertaking to be bound jointly and severally by all provisions of this Agreement.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts do not contain specific details about whether the obligations under Annex Brands' Continuing Personal Guarantee can be transferred by the guarantor. While Attachment 2 is mentioned as the location of the Continuing Personal Guarantee, the actual text of that guarantee is not included in the provided documents.
Without the full text of the Continuing Personal Guarantee, it's impossible to determine the conditions under which a guarantor's obligations might be transferred or assigned to another party. This is a critical point for potential franchisees, as the personal guarantee represents a significant financial commitment.
A prospective Annex Brands franchisee should carefully review the complete Continuing Personal Guarantee within the FDD and seek clarification from Annex Brands regarding the transferability of obligations. Specifically, they should inquire about the circumstances, if any, under which the guarantee can be released or transferred to another party, and what conditions must be met for such a transfer to occur.