Does the Burros Fries Franchise Agreement require the franchisee's spouse to sign the agreement individually?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ATION OF THE OPPORTUNITY, INCLUDING HAVING RECEIVED A LIST WITH THE FRANCHISE DISCLOSURE DOCUMENT OF OTHER CURRENTLY AND PREVIOUSLY OPERATED BURROS & FRIES FRANCHISES, IF ANY AT THAT TIME.**
| IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this Burros & Fries Franchise, Inc., Franchise Agreement in duplicate on this , 2022. | ||
|---|---|---|
| FRANCHISOR: | Burros & Fries Franchise, Inc. | |
| Address for | Signed: | |
| Notices | ||
| 4536 Bonita Rd. |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the Franchise Agreement includes a signature line for the franchisee's spouse to sign individually. The document shows a signature line specifically labeled "FRANCHISEE'S SPOUSE" with a space for a signature and date. This suggests that Burros Fries may require the franchisee's spouse to sign the agreement, potentially to acknowledge certain obligations or guarantees.
This requirement is often related to the personal guarantee, especially if the franchisee is married and resides in a community property state. By having the spouse sign, Burros Fries aims to ensure that the entire marital community's assets are available to satisfy the obligations under the franchise agreement. This is further supported by the inclusion of an "Individual Guaranty" schedule in the Franchise Agreement, which requires the guarantor to agree individually and on behalf of their marital community to guarantee the franchisee's performance.
Prospective franchisees should carefully review this section of the Franchise Agreement and seek legal counsel to understand the full implications of their spouse's signature. It is important to clarify the extent of the spouse's obligations and potential liabilities under the agreement. Franchisees should also inquire whether the spousal signature is mandatory in all cases or if there are specific circumstances that trigger this requirement.