Are there any exceptions to the personal guaranty requirement 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, including their spouses, must sign a personal guarantee. This guarantee covers all obligations under the Franchise Agreement.
This means that each owner is personally liable for the Carbones Pizzeria franchise's debts and obligations. If the franchise fails to meet its financial or contractual responsibilities, the franchisor can seek recourse from the personal assets of the owners and their spouses who signed the guarantee. This is a standard practice in franchising, as it provides the franchisor with additional security and assurance that the franchisee will uphold their commitments.
There are no explicit exceptions to this personal guarantee requirement outlined in the provided documentation. Therefore, any potential franchisee operating under a business entity should be prepared for all owners and their spouses to sign a personal guarantee. Prospective franchisees should discuss with the franchisor whether there are any circumstances under which a personal guarantee might be waived or limited.