Are all owners of a proposed Chocolate Bash franchise assignee required to provide a guaranty?

According to the 2024 Chocolate Bash Franchise Disclosure Document, if the franchisee is an entity, each owner must sign a personal guaranty, as detailed in Attachment 3 of the franchise agreement. An "Owner" is defined as any person or entity that directly or indirectly owns or controls any equity of the franchisee. If the franchisee is an individual, then the franchisee is considered the "Owner".

This requirement means that all individuals or entities with an ownership stake in a Chocolate Bash franchise operated as a business entity are obligated to personally guarantee the franchisee's financial and contractual obligations to CB Franchising. This guaranty makes the owner personally liable for the debts and obligations of the franchise, potentially putting their personal assets at risk if the franchise fails to meet its obligations.

Prospective Chocolate Bash franchisees should carefully review Attachment 3, the personal guaranty form, to fully understand the scope of the obligations they will be undertaking. They should also seek legal and financial advice to assess the potential risks and implications of providing a personal guaranty before signing the Franchise Agreement.