Under the Annex Brands Continuing Personal Guarantee, who benefits from the guarantee?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| As an inducement to Annex Brands, Inc., a California corporation ("Franchisor"), to enter into that certain franchise agreement with an effective date of ("Agreement") by and between Franchisor and |
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| ("Franchisee"), I/we, as personal guarantor(s) (each a "Guarantor"), jointly and severally, |
| absolutely and unequivocally, personally guarantee the performance by Franchisee of all |
| obligations of Franchisee to Franchisor under, or arising out of, the Agreement, and all other |
| agreements signed between Franchisor or any of Franchisor's affiliates ("Other Agreements"), and |
| agree to perform those obligations should Franchisee be unable to perform. The obligations |
| assumed under this Continuing Personal Guarantee are not transferable. |
| Should the time or manner of payment of any amounts owed by Franchisee to Franchisor |
| or any of Franchisor's affiliates change or should any obligation of Franchisee to Franchisor or |
| any of Franchisor's affiliates be modified, such action will not affect the liabilities of Guarantor in |
| any manner. |
| Guarantor agrees to become bound by, and participate in, any judicial proceedings or |
| arbitration proceedings brought by Franchisor or any of Franchisor's affiliates to enforce the |
| Agreement or Other Agreements and this Continuing Personal Guarantee. |
| Guarantor will pay reasonable attorneys' fees and all other costs and expenses, which may |
| be incurred by Franchisor or any of Franchisor's affiliates through appeal in the enforcement of |
| this Continuing Personal Guarantee. |
| This is a continuing personal guarantee and it will remain in full force until all obligations |
| of Franchisee to Franchisor under the Agreement or Other Agreements are fully performed. |
| Should any one or more provisions of this Continuing Personal Guarantee be determined |
| to be illegal or unenforceable, all other provisions will nevertheless remain effective. |
| This Continuing Personal Guarantee will inure to the benefit of Franchisor, its affiliates, |
| its successors and assigns, and is intended to bind Guarantor and his/her/their heirs, executors, |
| administrators, successors and assigns. |
| Guarantor, having received a true copy of this Continuing Personal Guarantee, hereby |
| agrees to be bound by its terms. |
| Dated: |
| at |
| (City/State) |
| (Guarantor): |
| (Guarantor): |
| (Guarantor): |
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the Continuing Personal Guarantee benefits Annex Brands, Inc., its affiliates, successors, and assigns. This guarantee is designed to ensure that the obligations of the franchisee to Annex Brands are met, even if the franchisee is unable to fulfill them. The guarantor agrees to cover the franchisee's responsibilities under the Franchise Agreement and any other agreements signed with Annex Brands or its affiliates.
This means that if a franchisee defaults on their financial or contractual obligations to Annex Brands, the guarantor becomes personally liable for those obligations. This could include unpaid franchise fees, royalties, or other debts owed to Annex Brands. The guarantee remains in effect until all obligations of the franchisee to Annex Brands are fully performed.
The Continuing Personal Guarantee also stipulates that any changes to the payment terms or obligations between the franchisee and Annex Brands do not affect the guarantor's liabilities. Furthermore, the guarantor agrees to participate in any legal or arbitration proceedings initiated by Annex Brands or its affiliates to enforce the Franchise Agreement or the Continuing Personal Guarantee. The guarantor is also responsible for covering reasonable attorney's fees and other expenses incurred by Annex Brands in enforcing the guarantee.
For a prospective Annex Brands franchisee, this implies that anyone signing a personal guarantee should fully understand the financial risks involved. They should carefully review the Franchise Agreement and any related documents to understand the scope of the franchisee's obligations and the potential liabilities they are guaranteeing. It is advisable to seek legal counsel to fully comprehend the implications of signing a Continuing Personal Guarantee.