For a Mr. Sandless franchise, what is the extent of the guarantor's liability regarding the Franchisee's obligations?
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 plays a significant role in ensuring the franchisee's obligations are met. The guarantor, who must have an interest in the Mr. Sandless franchise, agrees to personally and unconditionally guarantee the franchisee's obligations to Mr. Sandless. This includes being bound by all terms, conditions, restrictions, and prohibitions outlined in the Franchise Agreement.
Specifically, the guarantor's responsibilities extend to the confidentiality provisions, covenants, and indemnification provisions detailed in Sections 12, 18, and 19.4 of the Franchise Agreement. Furthermore, the guarantor acts as surety for the full and faithful performance of all financial obligations, commitments, and payments required of the franchisee under the agreement.
Mr. Sandless retains the right to proceed directly against the guarantor without first pursuing remedies against the franchisee or any other guarantor. The guarantor is jointly and severally liable for all obligations, commitments, and payments required of the franchisee. This means that Mr. Sandless can seek full payment or performance from any one of the multiple parties who are liable. If a franchisee is a corporation or limited liability company, all shareholders or members/managers must sign a Guaranty Agreement, personally agreeing to be bound by the terms of the Agreement and guaranteeing the franchisee's obligations.