If the Chocolate Fish Coffee franchisee is an entity, what specific document must each owner sign?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, if the franchisee is a business entity, each owner must sign a personal guaranty. This guaranty ensures that the owners are personally liable for the franchisee's obligations to Chocolate Fish Franchising. The specific form of this guaranty is included as Attachment 3 to the Franchise Agreement.

This requirement is a standard practice in franchising. It protects Chocolate Fish Coffee by ensuring that there is recourse beyond the business entity itself if the franchisee fails to meet its financial or contractual obligations. The personal guaranty essentially extends the liability to the individual owners, making them directly responsible for the performance of the franchise.

Prospective Chocolate Fish Coffee franchisees should carefully review Attachment 3 to understand the full scope of the personal guaranty. They should also consult with legal and financial advisors to assess the implications of signing such a document. This is a critical aspect of the franchise agreement, as it can have significant personal financial consequences for the owners of the franchisee entity.