Under what circumstances would a member of Alloy Personal Training, LLC be liable for the debts, obligations, or other liabilities of the company?

According to Alloy's 2025 Franchise Disclosure Document, Alloy Personal Training, LLC is structured as a limited liability company. This structure generally shields its members from the company's debts, obligations, and other liabilities. As a limited liability company, Alloy's members are typically not held personally responsible for the company's financial or legal obligations. This protection extends to liabilities arising from contracts, torts, or other causes.

However, there is a specific exception to this liability protection. If a member of Alloy has signed a specific guarantee, they can be held liable for the company's debts and obligations. This means that if a member has personally guaranteed a loan, lease, or other financial commitment of Alloy, they can be pursued for those debts if the company defaults. This is a common practice in franchising, where franchisors may require personal guarantees to ensure financial stability and commitment from their franchisees.

Therefore, while the limited liability structure of Alloy generally protects its members, prospective franchisees should carefully review any documents they are asked to sign, particularly looking for any clauses that constitute a personal guarantee. Understanding the implications of such guarantees is crucial, as it can expose the member's personal assets to the company's liabilities. Franchisees should seek legal counsel to fully understand the extent of their potential liability before signing any agreements.