Does Card My Yard require each of the franchisee's owners to execute a Guaranty and Assumption Agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
If the transferee is a corporation, partnership, limited liability company or other entity, those of the transferee's owners whom we require shall execute such guaranty and assumption documents as we may require.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if the franchisee is a corporation, partnership, limited liability company, or other entity, Card My Yard will require some or all of the franchisee's owners to execute guaranty and assumption documents. This means that the owners may have to personally guarantee the obligations of the franchise entity.
This requirement is triggered when the franchise is owned by a business entity rather than an individual. The specific owners required to sign the guaranty are determined by Card My Yard.
For a prospective franchisee, this implies that if you choose to operate your Card My Yard franchise through a business entity, you and potentially your business partners may be held personally liable for the franchise's debts and obligations. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default by the franchisee.