Does Cicis require all of the franchisee's Owners to execute the Guaranty and Assumption Agreement?

According to Cicis's 2025 Franchise Disclosure Document, all of the franchisee's owners must execute the Guaranty and Assumption Agreement. This agreement, also referred to as the "Guaranty," is attached as Attachment B to the Franchise Agreement.

The Guaranty and Assumption of Obligations means that each owner (Guarantor) personally guarantees the franchisee's obligations to Cicis. This includes ensuring that the franchisee punctually pays and performs every agreement and covenant outlined in the Franchise Agreement. The guarantor also agrees to be personally bound by, and personally liable for any breaches of the agreement. This encompasses both monetary obligations and the responsibility to take or avoid specific actions as detailed in the agreement, including non-competition, confidentiality, and transfer requirements.

This requirement ensures that Cicis has recourse to the personal assets of all owners, not just the business assets, if the franchise fails to meet its obligations. The Guarantor's liability is direct, immediate, and joint and several with the Franchisee and other guarantors. This means Cicis can pursue any guarantor for the full amount owed without first pursuing the franchisee. The guarantor's obligations are not affected by any extensions of time or credit that Cicis may grant to the franchisee. The guarantor also waives rights to payments and claims against the franchisee arising from their performance under the Guaranty.