Who is required to sign the Personal Covenant and Guarantee for a Bath Tune Up franchise?
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, or those who possess a direct or indirect beneficial ownership interest in the franchisee. This requirement also extends to the spouse of the franchisee.
In practical terms, this means that if the franchise is owned by a corporation or LLC, any person with significant management authority or ownership stake must personally guarantee the franchise's obligations. This is a common practice in franchising, as it ensures that the franchisor has recourse to individual assets if the franchise business fails to meet its financial or contractual responsibilities.
For a prospective Bath Tune Up franchisee, this implies that they, and potentially their spouse or business partners, will be personally liable for the franchise's debts and obligations. It is crucial to carefully review the Personal Covenant and Guarantee document with legal counsel to fully understand the scope of this personal liability before investing in a Bath Tune Up franchise.