Are Mr. Sandless's remedies for a franchisee's default exclusive, or can Mr. Sandless pursue other legal or equitable remedies?
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)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, the Guaranty Agreement stipulates that Mr. Sandless does not have to exhaust remedies against the franchisee before pursuing action against the guarantor. The guarantor agrees to be bound by all terms of the Franchise Agreement, including confidentiality, covenants, and indemnification provisions.
Specifically, the guarantor agrees to act as surety for all financial obligations of the franchisee. Mr. Sandless can proceed directly against the guarantor without first pursuing the franchisee or any other guarantor. The guarantor is jointly and severally liable for the franchisee's obligations.
This arrangement provides Mr. Sandless with flexibility in addressing defaults, allowing them to pursue the most efficient path to recovery, whether it's directly against the franchisee, the guarantor, or both. This clause is designed to protect Mr. Sandless's interests by ensuring that financial obligations are met, and it streamlines the process of recovering funds in case of franchisee default. Prospective franchisees should carefully review the Guaranty Agreement and understand the full extent of the guarantor's obligations.