Must the principals' spouses also execute the Guarantee, Indemnification, and Acknowledgment for a Beggars Pizza franchise?

According to the 2025 Beggars Pizza Franchise Disclosure Document, if the franchisee is a corporation, partnership, or limited liability company, then all of the principals thereof and their spouses must execute a Guarantee, Indemnification, and Acknowledgment. This agreement is in the form attached as Exhibit F to the FDD.

This requirement means that the assets of the principals' spouses could be at risk should the Beggars Pizza franchise default on its obligations. The Guarantee, Indemnification, and Acknowledgment ensures that Beggars Pizza can pursue the personal assets of both the principals and their spouses to cover any debts or liabilities of the franchise.

This is a fairly standard practice in franchising, as franchisors often seek to secure the financial obligations of the franchisee with personal guarantees, especially when the franchisee is a business entity. Prospective franchisees should carefully consider the implications of this requirement and consult with legal and financial advisors to understand the full extent of their potential liability.