Can Mr. Sandless enforce the franchise agreement solely or jointly with the franchisee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| WHEREAS, a Franchise Agreement dated | ("Franchise Agreement"), has |
|---|---|
| been entered into between Mr. Sandless Franchise LLC ("Franchisor") and | |
| (referred to as "Franchisee") for the operation by Franchisee of a Mr. Sandless pursuant to such | |
| Franchise Agreement; and | |
| WHEREAS, the undersigned guarantor desires to guarantee the obligations of Franchisee to | |
| Franchisor; | |
| NOW, THEREFORE, the parties hereto, intending to be legally bound, do hereby agree as follows: | |
| The undersigned, as a person with an interest in a Mr. Sandless franchise, agrees to personally and | |
| unconditionally guarantee the obligations of Franchisee to Franchisor and shall personally be subject to and | |
| bound by all terms, conditions, restrictions and prohibitions contained in the Franchise Agreement | |
| including, without limitation, the confidentiality provisions, covenants, and indemnification provisions | |
| contained in Sections 12, 18 and 19.4, respectively. Further, the undersigned agrees to personally act as | |
| surety for the full and faithful performance of all of the financial obligations, commitments and payments | |
| required of the Franchisee in such Franchise Agreement. The undersigned agrees that Franchisor does not | |
| have to pursue any remedies it may have against the Franchisee or any other individual guarantor; but, | |
| rather, it may proceed directly and primarily against the undersigned with or without joining the Franchisee | |
| or other guarantors as principals or as named parties in any such proceeding. The undersigned is jointly | |
| and severally liable for such obligations, commitments and payments required of the Franchisee. | |
| Guarantor | |
| Address: | |
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, a guarantor may be involved in ensuring the franchisee's obligations are met. Specifically, the Guaranty Agreement stipulates that the guarantor agrees to unconditionally guarantee the franchisee's obligations to Mr. Sandless. This means the guarantor is personally subject to all terms, conditions, restrictions, and prohibitions within the Franchise Agreement.
The agreement emphasizes that Mr. Sandless does not have to first pursue remedies against the franchisee or any other guarantor. Instead, Mr. Sandless can directly and primarily pursue the guarantor, with or without including the franchisee or other guarantors in any legal proceedings. The guarantor is jointly and severally liable for the franchisee's obligations, commitments, and payments.
This arrangement provides Mr. Sandless with a direct avenue to enforce the financial and operational commitments outlined in the Franchise Agreement. For a prospective Mr. Sandless franchisee, this highlights the importance of understanding the Guaranty Agreement and the potential liabilities it imposes on the guarantor. The franchisee should ensure that anyone acting as a guarantor is fully aware of their responsibilities and the extent of their financial exposure under the agreement.