For Bb.Q Chicken, under what circumstances is a Principal's spouse required to execute a Guaranty?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If any Principal is a married individual and the Principal's spouse has not executed this Agreement, such Principal shall cause his or her spouse to personally execute and bind himself or herself to the terms of a Guaranty, in the form attached as Attachment 7.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, if a Principal of the franchisee is married and has not already signed the Franchise Agreement, then that Principal must ensure that their spouse executes a Guaranty. This Guaranty legally binds the spouse to the terms outlined in Attachment 7 of the agreement.
The purpose of this requirement is to provide Bb.Q Chicken with an additional layer of financial security and commitment to the franchise agreement. By having the spouse guarantee the obligations, Bb.Q Chicken aims to ensure that all parties with a vested interest in the franchisee's success are fully committed to upholding the terms of the agreement.
The spouse's Guaranty covers all monetary obligations and non-competition covenants of the franchisee, as detailed in Article 10 of the Franchise Agreement. This means the spouse is responsible for the franchisee's financial performance and adherence to non-compete clauses. The Guaranty is continuing and unconditional, meaning it remains in effect even if there are changes in ownership, renewals, or other alterations to the Franchise Agreement. The spouse also waives certain notices and demands related to payment or default.
This requirement is fairly common in franchising, as franchisors often seek to ensure that all key stakeholders are personally invested in the success of the franchise. Prospective Bb.Q Chicken franchisees should carefully review the Guaranty and ensure that their spouse is fully aware of the obligations it entails.