What obligations of the Mr. Sandless Franchisee does the guarantor personally and unconditionally guarantee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 must personally and unconditionally guarantee the franchisee's obligations to Mr. Sandless. This means the guarantor is bound by all the terms, conditions, restrictions, and prohibitions outlined in the Franchise Agreement. These include, but are not limited to, confidentiality provisions, covenants, and indemnification provisions detailed 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 or any other guarantor before pursuing the primary guarantor. Mr. Sandless can proceed directly against the guarantor, with or without involving the franchisee or other guarantors in any legal proceedings.
The guarantor is jointly and severally liable for all obligations, commitments, and payments required of the franchisee. This means that Mr. Sandless can seek the full amount due from any one guarantor, regardless of whether other guarantors exist. This arrangement provides Mr. Sandless with a direct and efficient means of ensuring compliance with the Franchise Agreement and securing financial obligations.