If the transferee of an Amorino franchise is a Business Entity, what must the Principals and their spouse/domestic partner provide?

According to Amorino's 2025 Franchise Disclosure Document, if the transferee of an Amorino franchise is a Business Entity, each of the transferee's Principals and their spouse or registered domestic partner must deliver to Amorino a guaranty in Amorino's then-current standard form of guaranty. This requirement ensures that Amorino has recourse to the personal assets of the individuals controlling the Business Entity, as well as their spouses or domestic partners, should the Business Entity fail to meet its financial obligations under the franchise agreement. This is a common practice in franchising, as it provides an additional layer of security for the franchisor.

This personal guaranty means that the Principals and their spouses/domestic partners are personally liable for the debts and obligations of the franchise. If the Business Entity defaults on payments or breaches the franchise agreement, Amorino can pursue legal action against these individuals directly to recover any losses. The guaranty remains in effect for the duration of the franchise agreement's term, aligning the personal financial interests of the Principals and their spouses/domestic partners with the success and compliance of the Amorino franchise.

Prospective franchisees should carefully review the terms of Amorino's standard form of guaranty to fully understand the scope of their personal liability. It is advisable to seek legal counsel to assess the potential risks and implications before signing the guaranty. Franchisees should also consider the financial stability of their Business Entity and ensure they have adequate resources to meet their obligations, as their personal assets could be at risk if the franchise encounters financial difficulties.