What does the spouse of a Guarantor acknowledge and consent to by signing the Cicis Guaranty?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
By signing below, the undersigned spouse of each Guarantor indicated below, acknowledges and consents to the guaranty given herein by his/her spouse. Such consent also serves to bind the assets of the marital estate to Guarantor's performance of this Guaranty. We confirm that a spouse who signs this 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 therein and for no other purpose (including, without limitation, to bind the spouse's own separate property).
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, when the spouse of a Guarantor signs the Cicis Guaranty, they acknowledge and consent to the guaranty provided by their spouse. This consent also serves to bind the assets of the marital estate to the Guarantor's performance of the Guaranty. However, a spouse signing solely in their capacity as a spouse (and not as an owner) is only acknowledging and consenting to the execution of the Guaranty by their spouse and to bind the assets of the marital estate, and not to bind the spouse's own separate property.
In simpler terms, if a Cicis franchisee's spouse signs the Guaranty, they are agreeing that the couple's shared assets can be used to cover any financial obligations the franchisee has under the Franchise Agreement. This is a significant commitment, as it puts the marital estate at risk if the franchisee fails to meet their financial obligations to Cicis.
This requirement is fairly common in franchising, as franchisors want to ensure they have recourse to sufficient assets should a franchisee default. Prospective Cicis franchisees should carefully consider the implications of the Guaranty and discuss it with their spouse and legal counsel before signing. It is important for both the franchisee and their spouse to understand the extent of their financial exposure and the potential risks to their marital assets.