Does the Mr. Sandless Guaranty Agreement require the guarantor to be a person with an interest in the Mr. Sandless franchise?
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, the Guaranty Agreement stipulates that the guarantor must be a person with an interest in a Mr. Sandless franchise. This individual agrees to personally and unconditionally guarantee the obligations of the franchisee to Mr. Sandless. They are also subject to all terms, conditions, restrictions, and prohibitions outlined in the Franchise Agreement. This includes, but is not limited to, confidentiality provisions, covenants, and indemnification provisions detailed in specific sections of the agreement.
Furthermore, the guarantor acts 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 or any other guarantor before proceeding directly against the undersigned guarantor. The guarantor is jointly and severally liable for the franchisee's obligations, commitments, and payments.
For a prospective Mr. Sandless franchisee, this means that if the franchise is owned by a corporation or LLC, all shareholders, members, and managers must sign the Guaranty Agreement. This ensures that individuals with a vested interest in the franchise are personally responsible for upholding the financial and operational obligations of the business. This requirement is common in franchising to ensure accountability and commitment from those involved in the business entity.