Does the Mr. Sandless Guaranty Agreement cover all obligations of 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: |
- 21.6.4 All shareholders of the corporation, or all members and managers of the limited liability company, must sign our Guaranty Agreement, personally agreeing to be bound by the terms of this Agreement, and guaranteeing performance of all of the franchisee's obligations under this Agreement;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the Guaranty Agreement ensures that a guarantor will cover the franchisee's obligations to Mr. Sandless. 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 subject to all terms, conditions, restrictions, and prohibitions in the Franchise Agreement.
The Guaranty Agreement specifically mentions that the guarantor will act as surety for the full 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, and can proceed directly against the guarantor. The guarantor is jointly and severally liable for the franchisee's obligations.
If the franchisee is a corporation or limited liability company, all shareholders or members and managers must sign the Guaranty Agreement. This ensures they are personally bound by the terms of the Franchise Agreement and guarantee the franchisee's performance of all obligations. This requirement is in place to ensure that Mr. Sandless has recourse to the personal assets of those controlling the franchisee entity, and not just the business assets of the franchisee.
The Guaranty Agreement also extends to confidentiality, covenants, and indemnification provisions outlined in specific sections of the Franchise Agreement. This means the guarantor is also responsible for upholding these aspects of the agreement, such as maintaining confidentiality and covering any liabilities the franchisee may incur.