For Checkersrallys franchises in California, are franchisees and their spouses required to sign a personal guarantee?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Personal Guarantee: Franchisees and all owners must sign a personal guarantee, making you and your spouse individually liable for your financial obligations under the agreement if you are married. The guarantee will place your and your spouse's marital and personal assets at risk if your franchise fails.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees in California, along with their spouses, are required to sign a personal guarantee. This requirement makes both the franchisee and their spouse individually liable for the financial obligations under the franchise agreement if they are married.
This personal guarantee places the marital and personal assets of the franchisee and their spouse at risk should the Checkersrallys franchise fail. This is a significant risk factor to consider, as personal assets could be used to cover the debts and obligations of the franchise.
It is important for prospective Checkersrallys franchisees in California to fully understand the implications of signing a personal guarantee and to seek legal counsel to assess the potential risks to their personal assets. Franchisees should evaluate their financial situation and risk tolerance before committing to the franchise agreement.