If the Aplus franchisee is a business entity, what document must each owner sign?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
If the franchisee is a business entity, each owner must sign an Unlimited Guaranty and Assumption of Obligations substantially in the form attached as Attachment 3 to the franchise agreement. Any individual who attends our initial training program, any additional guarantors, all shareholders of a corporation, all members of a limited liability company, all general and limited partners of a partnership and your Designated Manager must sign a non-disclosure and non-competition agreement substantially in the form attached as Attachment 2 to the franchise agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 51–52)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if the franchisee is a business entity, each owner is required to sign an Unlimited Guaranty and Assumption of Obligations, which is substantially in the form attached as Attachment 3 to the franchise agreement.
Additionally, any individual who attends the initial training program, any additional guarantors, all shareholders of a corporation, all members of a limited liability company, all general and limited partners of a partnership, and the Designated Manager must sign a non-disclosure and non-competition agreement. This agreement is substantially in the form attached as Attachment 2 to the franchise agreement.
This requirement ensures that all individuals with an ownership stake or significant management role in the Aplus franchise are personally bound by the obligations and restrictions outlined in the franchise agreement, including financial guarantees and confidentiality and non-competition clauses. Prospective franchisees should carefully review Attachments 2 and 3 to fully understand the scope of these obligations before entering into a franchise agreement.