If the Carbones Pizzeria franchisee is a business entity, what obligation do the owners have?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, if the franchisee is a business entity such as a corporation, partnership, or limited liability company, the owners have a specific obligation. Each of the franchisee's owners must sign a personal guaranty. This guaranty is an agreement to comply with all the provisions outlined in the Franchise Agreement.

In practical terms, this means that even if the Carbones Pizzeria franchise is owned by a business entity, the individuals behind that entity are personally responsible for ensuring the franchise adheres to the terms of the Franchise Agreement. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and assurance that the franchisee will uphold their obligations.

The personal guaranty essentially makes the owners of the business entity co-signers of the Franchise Agreement. If the Carbones Pizzeria franchise, operating under a corporate structure, fails to meet its obligations (such as paying royalties or adhering to operational standards), the franchisor can pursue the owners personally to enforce the agreement. This is a significant consideration for prospective franchisees who plan to operate their Carbones Pizzeria franchise through a business entity, as it exposes their personal assets to the risks associated with the franchise.