What financial obligations of the Mr. Sandless Franchisee does the guarantor act as surety for?
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 Mr. Sandless's 2025 Franchise Disclosure Document, a guarantor agrees to act as surety for the franchisee's financial obligations. The guarantor personally and unconditionally guarantees the franchisee's obligations to Mr. Sandless. This includes being bound by all terms, conditions, restrictions, and prohibitions in the Franchise Agreement. These include confidentiality, covenants, and indemnification provisions outlined in Sections 12, 18, and 19.4 of the agreement.
The guarantor is responsible for the full and faithful performance of all financial obligations, commitments, and payments required of the franchisee as per the Franchise Agreement. Mr. Sandless does not have to pursue remedies against the franchisee or any other guarantor. Instead, Mr. Sandless can proceed directly against the guarantor without including the franchisee or other guarantors in any legal proceedings.
The guarantor is jointly and severally liable for the franchisee's required obligations, commitments, and payments. This means that the guarantor can be held responsible for the entire amount owed by the franchisee, even if there are other guarantors. This arrangement provides Mr. Sandless with a direct and primary avenue for recovering any financial losses, ensuring that all financial responsibilities are met under the franchise agreement.