Is a spouse required to sign a personal guarantee for an Alloy franchise if they are not an owner of the entity?

According to Alloy's 2025 Franchise Disclosure Document, if the franchisee is an entity, all owners of that entity must sign a personal guarantee. However, a spouse is not required to sign a personal guarantee unless they are an owner of the entity. This means that if a spouse has no ownership stake in the Alloy franchise, they will not be obligated to sign a personal guarantee.

This policy protects the personal assets of spouses who are not directly involved in the ownership of the franchise. It ensures that only those with a financial interest and decision-making power are held personally liable for the franchise's debts and obligations. This is a fairly standard practice in franchising, as franchisors typically only require guarantees from those who stand to profit from the business.

For a prospective Alloy franchisee, this is an important consideration when structuring the ownership of their franchise entity. If they wish to shield their spouse from personal liability, they should ensure that the spouse does not have any ownership interest in the entity. It is crucial to consult with a legal professional to understand the full implications of personal guarantees and ownership structures before signing any franchise agreements.