Where can I find the form for the Continuing Guaranty that Caring Senior Service requires?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a business entity, each owner must sign a Continuing Guaranty substantially in the form attached as Attachment F to the Franchise Agreement. An owner's spouse is not required to sign a personal guaranty. The term "owner" means each individual or entity holding a direct or indirect beneficial ownership in the franchisee or developer. It includes all shareholders of a corporation, all members of a limited liability company, all general and limited partners of a limited partnership, and the grantor and the trustee of the trust, as well as each of their owners, if any.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 38)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, if the franchisee is a business entity, each owner must sign a Continuing Guaranty. The form for this guaranty is included as Attachment F to the Franchise Agreement. The FDD specifies that an owner's spouse is not required to sign a personal guaranty. The term "owner" is defined broadly to include individuals or entities holding direct or indirect beneficial ownership in the franchisee, such as shareholders, members of an LLC, partners in a limited partnership, and grantors and trustees of a trust, as well as their respective owners.
If a franchisee obtains financing from Caring Senior Service, each owner will also have to execute a Guaranty of Payment. This document is Attachment A to Exhibit I of the FDD, which is the Promissory Note. The execution of the Guaranty of Payment by each of the franchisee's Owners is required by Caring Senior Service as security for offering financing.
Prospective franchisees should carefully review Attachment F to the Franchise Agreement and Attachment A to Exhibit I to understand the obligations and liabilities associated with the Continuing Guaranty and Guaranty of Payment, respectively. It is advisable to consult with a legal professional to fully understand the implications of signing these documents.