What is the purpose of a spouse signing the guaranty for a Cicis franchise solely in their capacity as a spouse?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of your direct and indirect owners and your and their spouses will execute a guaranty in the form we prescribe undertaking personally to be bound, jointly and severally, by all provisions of the Franchise Agreement, the Area Development Agreement and any ancillary agreements
between you and us. A spouse who signs the guaranty solely in his or her capacity as a spouse (and not as an owner) is signing merely to acknowledge and consent to the execution of the guaranty by his or her spouse and to bind the assets of the marital estate as described and for no other purpose.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 43–44)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a spouse who is not an owner of the franchise may be required to sign a guaranty. This guaranty serves a limited purpose: it acknowledges the spouse's consent to the execution of the guaranty by their partner and binds the assets of the marital estate to the obligations under the Franchise Agreement, Area Development Agreement, and any ancillary agreements.
In essence, the spouse's signature ensures that marital assets can be used to fulfill the financial obligations of the franchise. This is particularly relevant in community property states or situations where assets are jointly held. The FDD explicitly states that the spouse's signature in this capacity does not extend to binding the spouse's own separate property.
This requirement is a risk mitigation measure for Cicis, ensuring that a broader asset base is available should the franchisee default on their financial commitments. For a prospective franchisee, it's crucial to understand the implications of this guaranty and how it affects jointly held assets. Franchisees should seek legal counsel to fully grasp the extent of their financial exposure and the potential impact on their marital estate.