What is the All States M.E.D. franchisee's obligation regarding the name of the guarantor?

According to the 2024 All States M.E.D. Franchise Disclosure Document, the franchisee must provide the printed name of each personal guarantor. The table in Item 23 provides space for this information, requiring the guarantor's name to be printed twice, along with their signature, home address, telephone number, and percentage of ownership in the franchisee's business. This information is collected to ensure that the guarantor can be held personally liable for the franchisee's obligations under the Franchise Agreement.

This requirement is a standard practice in franchising, as it provides the franchisor with additional security and recourse in case the franchisee defaults on their obligations. By having a personal guarantor, All States M.E.D. can pursue the guarantor's assets to recover any losses incurred due to the franchisee's non-compliance with the agreement. This reduces the risk for the franchisor and ensures that there is a responsible party who is fully committed to the success and adherence to the terms of the franchise.

Prospective franchisees should carefully consider the implications of providing a personal guarantee, as it puts their personal assets at risk. They should also ensure that the guarantor fully understands the obligations and potential liabilities involved before signing the guarantee. It is advisable to seek legal counsel to review the Franchise Agreement and the guarantee to fully understand the risks and responsibilities associated with it. The guarantor will also need to provide their home address, telephone number, and percentage of ownership in the franchisee.