factual

Who must sign the Guaranty Agreement for a Mr. Sandless franchise operated through a limited liability company?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 21.6.4 All shareholders of the corporation, or all members and managers of the limited liability company, must sign our Guaranty Agreement, personally agreeing to be bound by the terms of this Agreement, and guaranteeing performance of all of the franchisee's obligations under this Agreement;

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2025 FDD)

According to the 2025 Mr. Sandless Franchise Disclosure Document, if a franchisee operates their Mr. Sandless business through a limited liability company, all members and managers of that LLC are required to sign the Guaranty Agreement. By signing this agreement, they personally agree to be bound by the terms of the Franchise Agreement and guarantee the performance of all the franchisee's obligations under the agreement.

This requirement ensures that Mr. Sandless has recourse to the personal assets of the individuals controlling the franchisee entity, not just the assets of the LLC itself. This is a common practice in franchising, as it provides the franchisor with added security and demonstrates the commitment of the LLC's members and managers to the success of the Mr. Sandless business.

For a prospective Mr. Sandless franchisee, this means that if they choose to operate as an LLC, they must be prepared for all members and managers to take on personal liability for the franchise's obligations. This is a significant consideration when deciding on the business structure for the franchise. Franchisees should carefully review the Guaranty Agreement and understand its implications before signing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.