Under what condition would a member of Alloy Personal Training, LLC be liable for the company's debts?

According to Alloy's 2025 Franchise Disclosure Document, as a limited liability company, a member of Alloy Personal Training, LLC is generally not liable for the company's debts, obligations, or other liabilities. This protection extends to liabilities arising from contracts, torts, or other causes. This is a standard feature of the LLC structure, designed to shield individual members from business debts.

However, there is a specific exception to this general rule. If a member has signed a specific guarantee, they can be held liable for the debts of Alloy Personal Training, LLC. This means that if a member has personally guaranteed a loan or other obligation of the company, they can be pursued for the debt if the company fails to meet its obligations.

This is a common practice in franchising, especially when the franchise is newly established or has limited assets. Franchisors often require a personal guarantee to ensure that there is recourse in case of default. Prospective Alloy franchisees should carefully review any documents they are asked to sign and understand the implications of providing a personal guarantee. It is advisable to seek legal counsel to fully understand the risks and obligations associated with such a guarantee.