Does the Itan franchise agreement require a personal guarantee from the franchisee?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to secure Franchisee's financial obligations under the Franchise Agreement and all other Definitive Agreements (collectively, the "Secured Agreements") you hereby personally and unconditionally: (a) guarantee to us and our successors and assigns, that Franchisee shall punctually fulfil all of its payment and other financial obligations under the Secured Agreements; and (b) agree to be personally bound by, and personally liable for, each and every monetary provision in the Secured Agreements.
You waive: (i) acceptance and notice of acceptance by us of the foregoing undertakings; (ii) notice of demand for payment of any indebtedness guaranteed; (iii) protest and notice of default to any party with respect to the indebtedness guaranteed; (iv) any right you may have to require that an action be brought against Franchisee or any other Person as a condition of liability; and (v) the defense of the statute of limitations in any action hereunder or for the collection of any indebtedness hereby guaranteed.
You agree that: (a) your direct and immediate liability under this guaranty is joint and several with Franchisee and all other signatories to this Agreement; (b) you will render any payment required under the Secured Agreements upon demand if Franchisee fails to promptly do so; (c) your liability is not contingent or conditioned upon our pursuit of any remedies against Franchisee or any other Person; and (d) your liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence we grant to Franchisee or any other Person, including the acceptance of any partial payment or performance, or the compromise or release of any Claims, none of which shall in any way modify or amend this guarantee, which remains continuing and irrevocable during the term of each Secured Agreement and following the termination, expiration or transfer of each Secured Agreement to the extent any financial obligations under a Secured Agreement survive such termination, expiration or transfer.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are required to provide a personal guarantee to secure their financial obligations under the Franchise Agreement and all other Definitive Agreements. This means that the individual franchisee is personally liable for the business's financial responsibilities.
The personal guarantee mandates that the franchisee punctually fulfill all payment and other financial obligations outlined in the Secured Agreements. The franchisee also agrees to be personally bound by, and personally liable for, each and every monetary provision in these Secured Agreements. This ensures that Itan has recourse to the franchisee's personal assets if the business fails to meet its financial commitments.
The franchisee waives several rights, including the right to require Itan to first pursue action against the franchisee or any other person before enforcing the guarantee. The guarantee remains continuing and irrevocable during the term of each Secured Agreement and following the termination, expiration or transfer of each Secured Agreement to the extent any financial obligations under a Secured Agreement survive such termination, expiration or transfer. This underscores the comprehensive and enduring nature of the personal guarantee required by Itan.