What does the guarantor of a Mr. Sandless franchise agree to personally guarantee?
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 with an interest in a Mr. Sandless franchise agrees to personally and unconditionally guarantee the franchisee's obligations to Mr. Sandless. This means the guarantor is personally bound by all terms, conditions, restrictions, and prohibitions in the Franchise Agreement. These include confidentiality provisions, covenants, and indemnification provisions outlined in Sections 12, 18, and 19.4 of the 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 Franchise Agreement. Mr. Sandless does not have to pursue remedies against the franchisee first; it can proceed directly against the guarantor. The guarantor is jointly and severally liable for the franchisee's obligations, commitments, and payments.
In simpler terms, if the Mr. Sandless franchisee fails to meet their financial or contractual obligations, Mr. Sandless can seek recourse directly from the guarantor. This is a significant commitment, as the guarantor's personal assets are at risk if the franchisee defaults. This arrangement is common in franchising, especially when the franchisee is a corporate entity or has limited operating history, to provide the franchisor with additional security.