Does the personal guaranty for a Carbones Pizzeria franchise include an agreement to be bound by the confidentiality and noncompete provisions of the Franchise Agreement?
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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 13–14)
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 extends to all obligations of the franchisee under the Franchise Agreement.
Specifically, the personal guaranty includes an agreement to be bound by all provisions of the Franchise Agreement. This encompasses both the confidentiality and noncompete provisions outlined in the agreement. The exact form of the Guaranty is attached to the Franchise Agreement itself.
This means that not only is the franchisee bound by the confidentiality and noncompete terms, but also the individual owners and their spouses who sign the personal guarantee. This is a common practice in franchising, designed to protect the franchisor's confidential information and prevent unfair competition, even by individuals associated with the franchisee entity.