According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the franchise agreement includes an exhibit for a Personal Guaranty Agreement. This agreement requires the undersigned to waive acceptance and notice of acceptance by the Franchisor, notice of demand for payment, protest and notice of default, and any right to require action against the Franchisee or any other person as a condition of liability.

In practical terms, this means that if you sign a Personal Guaranty Agreement for an Afuri Ramen Dumpling franchise, you are personally liable for the financial obligations of the franchise. This could include debts, leases, and other liabilities. By waiving certain rights, you limit your ability to contest or delay payment of these obligations.

Personal guarantees are a common practice in franchising, especially for new franchisees or those operating under a corporate entity. This agreement ensures that Afuri Ramen Dumpling has recourse to the personal assets of the franchisee in case of default. Prospective franchisees should carefully review the Personal Guaranty Agreement with a legal advisor to fully understand the implications before signing the Franchise Agreement.

It is important to note that the signature instructions within the franchise agreement state that if the franchisee is a corporation, limited liability company, or other business entity, the agreement must be signed by a company officer or owner authorized to sign on behalf of the company. Additionally, the agreement must be signed by all officers and owners of the company as individuals, further emphasizing the importance of understanding the personal liability involved.