Where can I find the 'Guaranty and Assumption of Obligations' document for a City Publications franchise?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
All holders of a legal or beneficial interest in Franchisee of five percent (5%) or greater shall be required to execute the Guaranty and Assumption of Obligations attached hereto as Exhibit B and incorporated herein by reference.
E. Approvals
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 25–26)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the 'Guaranty and Assumption of Obligations' document is included as Exhibit B to the Franchise Agreement. Item 23 lists the exhibits included in the disclosure document, and Exhibit B is specifically named as the 'Guaranty and Assumption of Obligations'.
This document is significant because, as stated in Item 23, all holders of a legal or beneficial interest of 5% or greater in the franchisee are required to execute this guaranty. This means that if the franchisee is a business entity such as a corporation or LLC, individuals with a significant ownership stake will personally guarantee the franchisee's obligations under the Franchise Agreement.
Prospective franchisees should carefully review Exhibit B with their legal counsel to fully understand the scope of the personal guarantee and the obligations they will be assuming. This is a standard practice in franchising, as franchisors typically want to ensure that individuals with a vested interest in the business are personally liable for its performance and adherence to the franchise agreement.