Who is required to sign the Principal Owner's Guaranty for an Augusta Lawn Care franchise?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If You are a corporation, all officers and shareholders, or, if You are a partnership, all Your general partners, or, if You are a limited liability company, all Your members, shall approve this Agreement, permit You to furnish the financial information required by Augusta Lawn Care , and agree to the restrictions placed on them including restrictions on the transferability of their interests in the franchise and the Augusta Lawn Care Business and limitations on their rights to compete, and sign separately a Guaranty, guaranteeing Your payments and performance. Where required to satisfy our standards of creditworthiness, or to secure the obligations made under this Agreement, You may be asked to sign the Guaranty. Our form of Guaranty appears as Exhibit C to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, if the franchisee is a corporation, all officers and shareholders must sign the Guaranty. If the franchisee is a partnership, all general partners must sign the Guaranty. If the franchisee is a limited liability company, all members must sign the Guaranty. These individuals must also approve the Franchise Agreement, permit the franchisee to furnish required financial information to Augusta Lawn Care, and agree to the restrictions placed on them, including those on the transferability of their interests in the franchise and the Augusta Lawn Care business, as well as limitations on their rights to compete.
The Guaranty ensures that Augusta Lawn Care has recourse to the personal assets of the business owners to cover any financial or performance obligations of the franchise. This is a common practice in franchising, as it provides the franchisor with an additional layer of security.
Exhibit C to the Augusta Lawn Care Franchise Agreement contains the form of Guaranty. The FDD also states that where required to satisfy Augusta Lawn Care's standards of creditworthiness, or to secure the obligations made under the Agreement, a franchisee may be asked to sign the Guaranty.