Are Principals and their spouse or domestic partner required to deliver a guaranty to Amorino?

According to Amorino's 2025 Franchise Disclosure Document, when transferring a franchise to a business entity, Amorino requires personal guarantees from certain individuals. Specifically, if a franchisee transfers their Amorino franchise to a business entity, each Principal of that business entity, along with their spouse or registered domestic partner, must provide Amorino with a personal guaranty. This guaranty must be in Amorino's then-current standard form.

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, in the event of a default or breach of the franchise agreement. This is a common practice in franchising, as it provides the franchisor with an additional layer of security beyond the assets of the business entity itself.

For a prospective Amorino franchisee, this means that if they plan to operate their franchise through a business entity, they and their Principals, along with their spouses or registered domestic partners, will need to be prepared to sign a personal guaranty. This is a significant legal obligation, as it puts their personal assets at risk. Franchisees should carefully consider the implications of signing a personal guaranty and seek legal advice before doing so.