Is a guaranty required for the Carbones Pizzeria Franchise Agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
, but we will not require the transferee to pay us a |
| Provision | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | new |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, a guaranty is required as part of the Franchise Agreement. Specifically, all owners of the franchise must sign the Guaranty attached to the Franchise Agreement.
This requirement means that if a Carbones Pizzeria franchisee has multiple owners, each owner is responsible for upholding the financial and operational obligations outlined in the Franchise Agreement. By signing the Guaranty, each owner commits to ensuring the franchise complies with all terms, including payment of fees and adherence to brand standards. This provides Carbones Pizzeria with an added layer of security, as they can pursue any owner individually or collectively if the franchise breaches the agreement.
Guaranties are a fairly standard practice in franchising, particularly when the franchisee is a business entity such as a corporation or LLC. The franchisor wants to ensure that there are individuals personally liable for the franchise's performance, not just a business entity that might have limited assets. Prospective Carbones Pizzeria franchisees should carefully review the Guaranty document and understand the full extent of their obligations and potential liabilities before signing the Franchise Agreement.