What is the scope of the personal guaranty required for a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are an entity, including a partnership, or you transfer your Franchise Agreement to an entity, including a partnership, you and any other owners (and your and their spouses) must sign a personal guaranty of all obligations under the Franchise Agreement and agreeing to be bound by all such obligations.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 23)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if the franchisee is a business entity such as a corporation or partnership, all owners (and their spouses) must sign a personal guaranty. This guaranty covers all obligations under the Franchise Agreement.
Specifically, the guaranty ensures 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 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 compliance with Carbones Pizzeria's manuals and operating procedures.
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 had individually executed it. This means the personal guarantors are fully responsible for the franchisee's adherence to the terms of the agreement.
This requirement is fairly standard in franchising, as it provides the franchisor with additional security and recourse in case the franchisee fails to meet its obligations. Prospective Carbones Pizzeria franchisees should carefully review the guaranty and understand its implications before signing the Franchise Agreement.