What obligations of the franchisee are guaranteed by the Guarantor under the Mr. Sandless agreement?
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 guarantor provides an unconditional guarantee of the franchisee's obligations to Mr. Sandless. This means the guarantor is fully responsible for ensuring the franchisee complies with all aspects of the Franchise Agreement. This includes, without limitation, the confidentiality provisions, covenants, and indemnification provisions contained in Sections 12, 18 and 19.4 of the agreement.
The guarantor also acts as surety for the full and faithful performance of all financial obligations, commitments, and payments required of the franchisee. Mr. Sandless does not have to pursue remedies against the franchisee first. It can proceed directly against the guarantor without including the franchisee in any legal proceedings. The guarantor is jointly and severally liable for all obligations, commitments, and payments required of the franchisee.
For a prospective Mr. Sandless franchisee, this means that if you require a guarantor, that person is taking on significant legal and financial responsibilities. The guarantor should fully understand the Franchise Agreement and be prepared to cover any potential shortfalls or breaches by the franchisee. This arrangement is common in franchising, especially when the franchisee is a new business entity or has limited financial history. It provides the franchisor with an additional layer of security and assurance that the franchise obligations will be met.