What obligations are covered by the personal guaranty for a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Each individual who is an owner of any entity, including a partnership, that is the franchisee, and their spouse, must sign a personal guaranty of all the obligations of the franchisee. This guaranty also includes an agreement to be bound by all provisions of the Franchise Agreement, including the confidentiality and noncompete provisions. The form of Guaranty is attached to the Franchise Agreement.
IN CONSIDERATION of the [INSERT ONE/DELETE REMAINING ONE] [grant by M & T Pizza Incorporated ("Franchisor") of a Carbone's Pizza franchise to the party named as Franchisee in the Franchise Agreement (the "Franchisee") to which this Guaranty is attached (the "Franchise Agreement")] OR [consent by M & T Pizza Incorporated ("Franchisor") to the assignment of the Franchise Agreement to which this Guaranty is attached (the "Franchise Agreement") to the assignee and party named as the Franchisee in the Franchise Agreement ("Franchisee")], and for other good and valuable consideration, receipt of which is hereby acknowledged, the undersigned hereby guarantee (jointly and severally with one another and all other guarantors of Franchisee, whether such guaranties are entered into prior to or after the date hereof) to Franchisor and to Franchisor's successors and assigns: (a) the payment of all costs and fees required to be paid to Franchisor or its affiliates by Franchisee, whether such costs and fees are provided for in the Franchise Agreement or under any other agreement between Franchisee and Franchisor or an affiliate of Franchisor, and (b) the performance by Franchisee of all its obligations under all such agreements and under all manuals and operating procedures of Franchisor's business system. The undersigned further specifically agree to remain individually bound by all covenants, obligations, and commitments of Franchisee contained in the Franchise Agreement and such other agreements to the same extent as if each of the undersigned had individually been named as Franchisee in the Franchise Agreement and such other agreements, and the undersigned had individually executed the Franchise Agreement and such other agreements.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 23)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, if the franchisee is an entity such as a partnership, each owner of the entity, including their spouse, must sign a personal guaranty. This guaranty covers all obligations of the franchisee to Carbones Pizzeria.
Specifically, the guaranty includes the payment of all costs and fees owed to Carbones Pizzeria or its affiliates by the franchisee. These costs and fees can arise from the Franchise Agreement itself or from any other agreement between the franchisee and Carbones Pizzeria or its affiliates. The guaranty also covers the franchisee's performance of all obligations under these agreements, as well as adherence to all manuals and operating procedures of the Carbones Pizzeria business system.
Furthermore, the guarantors agree to be individually bound by all covenants, obligations, and commitments of the franchisee as if they were individually named as the franchisee in the Franchise Agreement and any other related agreements. This means the guarantor is responsible for the franchisee's duties.
In essence, the personal guaranty ensures that Carbones Pizzeria can seek recourse directly from the owners and their spouses for any failures or debts of the franchisee entity, providing an additional layer of security for the franchisor.