Under the Mr. Sandless franchise agreement, for what are all guarantors jointly and severally liable?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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 provides an unconditional guarantee of 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, covenants, and indemnification provisions detailed in Sections 12, 18, and 19.4 of the agreement.
Furthermore, the guarantor acts as surety for the full performance of all financial obligations, commitments, and payments the franchisee is required to make under the Franchise Agreement. Mr. Sandless is not required to pursue any remedies against the franchisee or other guarantors before pursuing action against the guarantor. Mr. Sandless can proceed directly against the guarantor without including 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 or what their individual contributions might be. This arrangement provides Mr. Sandless with a direct and primary recourse for ensuring all financial and contractual obligations are met, placing a significant responsibility on the guarantor.
Prospective franchisees should carefully consider the implications of the Guaranty Agreement and ensure that any guarantor fully understands the extent of their financial and legal obligations. It is advisable for both the franchisee and the guarantor to seek independent legal counsel to review the Franchise Agreement and Guaranty Agreement before signing.