In California, must a Big Apple Bagels franchisee sign a personal guarantee?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE MUST SIGN A PERSONAL GUARANTEE TO AGREE TO BE PERSONALLY LIABLE FOR THE FRANCHISEE'S OBLIGATIONS MAKING YOU AND YOUR SPOUSE INDIVIDUALLY LIABLE FOR YOUR FINANCIAL OBLIGATIONS UNDER THE AGREEMENT IF YOU ARE MARRIED. THE GUARANTEE WILL PLACE YOUR AND YOUR SPOUSE'S MARITAL AND PERSONAL ASSETS AT RISK IF YOUR FRANCHISE FAILS.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, specifically the addendum for California, a franchisee is required to sign a personal guarantee. This means that the franchisee, and potentially their spouse, will be personally liable for the financial obligations of the franchise. This requirement puts the franchisee's personal and marital assets at risk if the Big Apple Bagels franchise fails.
This personal guarantee means that if the Big Apple Bagels franchise is unable to meet its financial obligations, the franchisor can pursue the franchisee's personal assets to cover the debts. This is a significant risk for potential franchisees, as it extends their financial liability beyond the business itself.
It is important for prospective Big Apple Bagels franchisees in California to carefully consider the implications of this personal guarantee and to seek legal and financial advice before signing the franchise agreement. Understanding the full extent of their personal liability is crucial to making an informed decision about investing in a Big Apple Bagels franchise.