What is the title of Exhibit C-6 to the 360 Painting Franchise Disclosure Document?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- EXHIBIT C-1 MISCELLANEOUS INFORMATION; TERRITORY DEFINED
- EXHIBIT C-2 PERSONAL COVENANTS
- EXHIBIT C-3 INTERNET WEB SITES AND LISTINGS AGREEMENT
- EXHIBIT C-4 TELEPHONE LISTING AGREEMENT
EXHIBIT C-5 FRANCHISEE INFORMATION
EXHIBIT C-6 GUARANTY AGREEMENT
EXHIBIT C-7 GENERAL RELEASE
EXHIBIT C-8 ACH AUTHORIZATION
EXHIBIT C-9 COPY OF SIGNED RECEIPT TO FRANCHISE DISCLOSURE DOCUMENT
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, Exhibit C-6 is titled "GUARANTY AGREEMENT". This exhibit is one of several included in the FDD, which cover various aspects of the franchise agreement and related documents. Franchisees should carefully review all exhibits to fully understand their obligations and the terms of the franchise agreement.
The presence of a Guaranty Agreement as Exhibit C-6 suggests that 360 Painting may require a personal guarantee from the franchisee or another party. This is a common practice in franchising, especially when the franchisee is a corporate entity with limited assets. The guarantee ensures that the franchisor has recourse to an individual's assets if the franchisee fails to meet its financial obligations under the franchise agreement.
A prospective 360 Painting franchisee should carefully review the Guaranty Agreement with legal counsel to understand the scope of the guarantee and the potential liabilities it creates. It is important to determine who is required to provide the guarantee (e.g., the franchisee, its owners, or other related parties) and what assets are at risk. Understanding the terms of the Guaranty Agreement is crucial for assessing the overall financial risk associated with investing in a 360 Painting franchise.