factual

Who must sign a personal guaranty for an Amorino franchise?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

We require that you or, if you are a business entity, each of your owners, and their spouses or registered domestic partners, sign a personal guaranty in a form acceptable to us, to guaranty your performance under the franchise agreement and any other related agreements.

Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 52–54)

What This Means (2025 FDD)

According to Amorino's 2025 Franchise Disclosure Document, if you are an individual franchisee, you must sign a personal guaranty. If the franchisee is a business entity, each of the owners, along with their spouses or registered domestic partners, must sign a personal guaranty. This guaranty ensures the franchisee's performance under the franchise agreement and any related agreements.

In practical terms, this means that if the Amorino franchise is owned by a corporation or LLC, all individuals with an ownership stake in that entity, as well as their spouses or registered domestic partners, are personally liable for the franchise's obligations. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract by the franchisee.

Prospective Amorino franchisees should carefully consider the implications of signing a personal guaranty, as it puts their personal assets at risk. It is advisable to consult with an attorney and financial advisor to fully understand the extent of their liability and to explore options for mitigating that risk.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.