Under what condition is a non-owner spouse required to sign the Guaranty for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Your direct and indirect owners will be required to sign an agreement (the current form of which is attached as Attachment B to the Franchise Agreement and the Area Development Agreement) pursuant to which they each personally assume and guarantee your obligations under the Franchise Agreement and the Area Development Agreement (each a "Guaranty"). If the spouses of your owners are not themselves owners of you, we will require them to sign the Guaranty solely to acknowledge that you are signing it to bind yourself and any marital property. A non-owner spouse is not otherwise obligated under the Guaranty.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 6–8)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if the spouses of the owners are not themselves owners, Cicis requires them to sign the Guaranty. However, this is solely to acknowledge that the owner is signing the agreement to bind themselves and any marital property. The non-owner spouse is not otherwise obligated under the Guaranty. This requirement ensures that marital assets are considered when assessing financial responsibility, even though the spouse isn't directly an owner or operator of the Cicis franchise.
This practice is relatively common in franchising, as franchisors seek to secure all available assets in case of default or breach of contract. By having the non-owner spouse sign the Guaranty, Cicis aims to prevent potential legal challenges related to marital property down the line. It's important to note that the non-owner spouse's obligation is limited to acknowledging the binding of marital property and does not extend to personal liability beyond that.
For a prospective Cicis franchisee, this means that if you are married and your spouse is not a co-owner of the franchise, your spouse will still need to sign the Guaranty. It is crucial to fully understand the implications of this requirement and to seek legal counsel if needed. While the non-owner spouse's liability is limited, it's essential to be aware of how marital property may be affected by the franchise agreement. Franchisees should discuss this with Cicis during the due diligence process.