For a Carbones Pizzeria franchise, who is required to sign a personal guaranty of all the obligations of the franchisee?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, if the franchisee is an entity such as a partnership, each individual who is an owner of that entity, along with their spouse, must sign a personal guaranty. This guaranty ensures that these individuals are personally responsible for all the financial and operational obligations of the Carbones Pizzeria franchise as outlined in the Franchise Agreement.

This requirement means that the personal assets of the owners and their spouses could be at risk if the Carbones Pizzeria franchise fails to meet its obligations. The guaranty also includes an agreement to be bound by all provisions of the Franchise Agreement, including the confidentiality and noncompete provisions, which extends their personal responsibility beyond just financial matters.

Personal guarantees are a common practice in franchising, especially when the franchisee is a business entity rather than an individual. This practice protects Carbones Pizzeria by ensuring there are individuals with personal assets at stake, which can incentivize diligent management and compliance with the franchise agreement. Prospective franchisees should carefully consider the implications of signing a personal guarantee and seek legal and financial advice before committing to the franchise.