Who is required to execute a guaranty for the Cicis Franchise Agreement?
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, all direct and indirect owners of the franchise, along with their spouses, are required to execute a guaranty. This guaranty ensures that these individuals are personally bound, jointly and severally, by all the provisions outlined in the Franchise Agreement, the Area Development Agreement, and any related ancillary agreements between the franchisee and Cicis.
For spouses who are not owners, their signature on the guaranty serves specifically to acknowledge and consent to the execution of the guaranty by their spouse and to bind the assets of the marital estate. This acknowledgment does not obligate the non-owner spouse beyond these specific conditions.
This requirement is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract by the franchisee. Prospective Cicis franchisees should be aware that their personal assets, and potentially those of their spouse, could be at risk if the franchise does not perform as expected.