Are all directors, officers, shareholders, partners, or members of a 1-800-GOT-JUNK? franchisee required to sign a guarantee agreement?

According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, all directors, officers, shareholders, partners, or members of a 1-800-GOT-JUNK? franchisee are required to sign and deliver an agreement guaranteeing the full and punctual payment and performance obligations of the Franchisee under the Franchise Agreement. Exhibit F to the disclosure document contains the guarantee agreement.

This requirement means that individuals with significant roles or ownership in the franchisee entity must personally guarantee the franchisee's financial and operational commitments to 1-800-GOT-JUNK?. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and ensures that those in control of the franchisee's business are personally invested in its success.

By requiring a personal guarantee from these individuals, 1-800-GOT-JUNK? aims to mitigate the risk of franchisee default and ensure compliance with the franchise agreement. Prospective franchisees should carefully review the guarantee agreement (Exhibit F) and understand the full extent of their personal obligations before signing the franchise agreement. They should also seek legal counsel to fully understand the implications of providing a personal guarantee.