If a Bft franchisee is an individual, must their spouse execute a Guarantee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| ("FRANCHISEE") | and | , | an | individual | |||||
|---|---|---|---|---|---|---|---|---|---|
| ("GUARANTOR") enter into this General Release on, with reference to the | |||||||||
| following facts: | |||||||||
| 1. | On, liability company ("FRANCHISOR"), and FRANCHISEE entered into a Franchise Agreement (the | BFT FRANCHISE SPV, LLC | a Delaware limited | ||||||
| "Franchise | Agreement") | to (the "Premises"). GUARANTOR guaranteed FRANCHISEE's performance under the Franchise Agreement pursuant to a Guarantee and Assumption of Obligations (the | operate | a | Franchised | Business | located | at | |
| "Guarantee"). | In | consideration , the Franchise Agreement provides that FRANCHISEE must sign this General Release as a condition to such All capitalized terms not otherwise defined in this General Release shall have the same meaning as in the Franchise Agreement | of | FRANCHISOR'S | processing | and | approval | of | |
| and/or the Guarantee. |
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)
What This Means (2025 FDD)
Based on the 2025 FDD, whether a spouse must execute a guarantee for a Bft franchise is not explicitly stated. However, the document mentions a 'GUARANTOR' who guarantees the franchisee's performance under the Franchise Agreement.
The FDD includes a passage referencing a 'GUARANTOR' entering into a General Release related to the Franchise Agreement. This guarantor ensures the franchisee meets their obligations. The agreement stipulates that the franchisee must sign the General Release as a condition for the franchisor's processing and approval of the Franchise Agreement and/or the Guarantee.
The FDD also states that if the Guarantor is a business entity, retirement or investment account, or trust, and the franchisee is delinquent in payments, no dividends or distributions may be made to the Guarantor's owners, accountholders, or beneficiaries while the delinquency exists, subject to applicable law. To determine if a spouse must act as a guarantor, a prospective franchisee should seek clarification from Bft regarding their specific requirements and policies.