Under the Annex Brands Continuing Personal Guarantee, are the obligations assumed transferable?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
current documents required by Franchisor. 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. Franchisee will furnish to Franchisor at any time upon request, in such form as Franchisor may require, a list of all members, partners, owner
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
Based on the 2025 FDD, Annex Brands requires each member, partner, owner, or shareholder of the franchisee to execute a Continuing Personal Guarantee. The excerpt does not specify whether the obligations assumed under the Continuing Personal Guarantee are transferable. The FDD mentions the Continuing Personal Guarantee as Attachment 2 to the franchise agreement, indicating its importance in the franchising relationship.
Without specific details in the provided FDD excerpts, it's unclear whether the obligations under the Continuing Personal Guarantee can be transferred to another party. This is a critical point for potential franchisees, as it determines the extent of their personal liability and whether that liability can be shifted or assigned under certain circumstances.
Therefore, a prospective Annex Brands franchisee should directly ask the franchisor about the terms of the Continuing Personal Guarantee, specifically whether the obligations can be transferred or assigned, and under what conditions such a transfer might be possible. This information is essential for understanding the full scope of personal financial risk associated with the franchise.