Is the Guaranty Agreement a separate contract from the Mr. Sandless Franchise Agreement?

According to the 2025 Mr. Sandless Franchise Disclosure Document, the Guaranty Agreement is included as an attachment to the Mr. Sandless Franchise Agreement. Specifically, Attachment 3 to the Mr. Sandless Franchise LLC Single Unit Franchise Agreement is the Guaranty Agreement. This suggests it is a related but distinct document.

The Guaranty Agreement is used when a third party (the guarantor) agrees to be responsible for the franchisee's obligations under the Franchise Agreement. This is common when the franchisee is a business entity or when the franchisor requires additional security. The guarantor agrees to be bound by all terms, conditions, restrictions, and prohibitions contained in the Franchise Agreement.

The Guaranty Agreement ensures that Mr. Sandless has recourse to another party should the franchisee default on their obligations. The guarantor is jointly and severally liable for the franchisee's obligations, meaning Mr. Sandless can pursue the guarantor directly without first pursuing the franchisee. This arrangement provides Mr. Sandless with an additional layer of financial security.

Prospective franchisees should carefully review the Guaranty Agreement and understand the full extent of the guarantor's obligations. Guarantors should be fully aware of the financial risks involved and seek legal counsel before signing. Franchisees should also note that the franchisor does not have to pursue any remedies against the franchisee before pursuing them against the guarantor.