If the Caring Senior Service franchisee is a business entity, what must each owner sign?
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 the 2025 Caring Senior Service Franchise Disclosure Document, if the franchisee is a business entity, each owner must sign a Continuing Guaranty. This guaranty is substantially in the form attached as Attachment F to the Franchise Agreement.
The term "owner" is defined broadly to include each individual or entity holding a direct or indirect beneficial ownership in the franchisee. This encompasses 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.
However, the owner's spouse is not required to sign a personal guaranty. This requirement ensures that Caring Senior Service has recourse to the personal assets of the individuals who own the franchisee entity, providing an additional layer of security for the franchisor.