Who is required to execute the Guaranty of Payment when Caring Senior Service provides financing?

According to Caring Senior Service's 2025 Franchise Disclosure Document, if Caring Senior Service provides financing to an existing franchisee or employee for up to 50% of the initial franchise fee, the franchisee will have to execute a Promissory Note and its related Guaranty of Payment. As a condition of receiving this financing, Caring Senior Service requires each of the franchisee's Owners to execute the Guaranty of Payment.

This means that if you, as a prospective Caring Senior Service franchisee, require financing from the franchisor, you will need to sign a Promissory Note and a Guaranty of Payment. Furthermore, all individuals defined as "Owners" of your franchise business will also be required to sign the Guaranty of Payment. This is a common practice in franchising, as it provides the franchisor with additional security for the financing they are providing.

It is important for prospective franchisees to carefully review the Promissory Note and Guaranty of Payment, including Attachment A to Exhibit I, to fully understand their obligations and the potential risks involved. Franchisees should also understand who Caring Senior Service considers to be an "Owner" for the purposes of the guaranty, as this could include multiple individuals or entities involved in the franchise ownership structure.