Are all owners of an All County franchise required to sign personal guaranties?

According to All County's 2025 Franchise Disclosure Document, all owners of an All County franchise are required to sign personal guaranties. This requirement places the personal and marital assets of the franchise owners at risk. This means that if the All County franchise incurs debt or liabilities that the business cannot cover, the personal assets of all owners, including marital assets, could be used to satisfy those obligations.

Personal guarantees are a common practice in franchising, especially for new or smaller businesses. Franchisors often require them to ensure that they have recourse beyond the business assets of the franchisee. This reduces the franchisor's risk and provides an incentive for the franchisee to manage the business responsibly.

Prospective All County franchisees should carefully consider the implications of signing a personal guarantee. They should assess their personal financial situation and understand the potential risks involved. It is advisable to seek legal and financial advice before signing any franchise agreement, particularly regarding the personal guarantee clause. Franchisees should also inquire about the conditions under which the guarantee can be enforced and whether there are any options to limit their personal liability.