If the 1 800 Packouts franchisee is an Entity, who must sign a Guaranty?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, limited liability company, partnership, or other entity (collectively, an "Entity"), all of your owners of a legal and/or beneficial interest in the Entity (the "Owners") are listed on Appendix B.
If you are an Entity, the individual Owner who you must appoint to have authority over all business decisions related to your business and to have the power to bind you in all dealings with us will be referred to as your "Operating Principal." The term "Manager" shall mean the person referred to in Section F (Management of the Franchised Business) of this Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 47)
What This Means (2025 FDD)
According to the 2025 FDD, if a 1 800 Packouts franchisee is a corporation, limited liability company, partnership, or other entity (collectively, an "Entity"), all owners with a legal or beneficial interest in the Entity must be listed on Appendix B. Each individual with direct or indirect ownership interest is referred to as an "Owner."
Furthermore, 1 800 Packouts requires the Entity to appoint an individual Owner as the "Operating Principal." This Operating Principal must have the authority over all business decisions related to the Franchised Business and must have the power to bind the entity in all dealings with 1 800 Packouts.
While the FDD defines who the Owners and Operating Principal are, it does not specify who must sign a Guaranty if the franchisee is an Entity. A prospective franchisee should ask 1 800 Packouts this question.