For Bath Tune-Up, who is required to sign the Personal Covenant and Guarantee?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| TITLE OF AGREEMENT | EXHIBIT/ SCHEDULE # | SIGNED BY |
|---|---|---|
| Franchise Agreement, State Addendum and Schedules | Exhibit A | You and us |
| Personal Covenant and Guarantee | Schedule 1 | All people having direct or indirect “Control”* over Franchisee or a direct or indirect beneficial ownership interest in Franchisee, including the spouse of Franchisee. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune-Up's 2025 Franchise Disclosure Document, the Personal Covenant and Guarantee must be signed by all individuals who have direct or indirect control over the franchisee. This also includes anyone with a direct or indirect beneficial ownership interest in the franchise. Furthermore, the spouse of the franchisee is also required to sign the Personal Covenant and Guarantee.
In practical terms, this means that if you are considering a Bath Tune-Up franchise, not only will you be required to sign the Personal Covenant and Guarantee, but so will any business partners who have control or ownership in your franchise entity. Your spouse will also be required to sign, regardless of their involvement in the business.
This requirement is fairly standard in franchising, as it ensures that the franchisor has recourse to the personal assets of those who benefit from and/or control the franchise, should the franchise breach the Franchise Agreement. Prospective franchisees should carefully review the Personal Covenant and Guarantee with a legal professional to fully understand the obligations and liabilities it creates.