Are all owners of a Beef O Bradys franchise required to sign a Principal Owner's Guaranty?

According to Beef O Bradys's 2025 Franchise Disclosure Document, each direct or indirect owner must sign and deliver a Principal Owner's Guaranty to Beef O Bradys contemporaneously with the signing of the Franchise Agreement. This guaranty is in the form attached to the Franchise Agreement.

This requirement ensures that all individuals with an ownership stake in the franchise are personally liable for the franchise's obligations to Beef O Bradys. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract by the franchisee.

The Principal Owner's Guaranty essentially makes each owner a personal guarantor of the franchise's performance. This means that their personal assets could be at risk if the franchise fails to meet its financial or contractual obligations to Beef O Bradys. Prospective franchisees should carefully review the terms of the Principal Owner's Guaranty and understand the full extent of their personal liability before signing the Franchise Agreement.