Are spouses required to sign a guaranty for a City Publications franchise?

According to City Publications' 2025 Franchise Disclosure Document, spouses are not required to sign a guaranty. However, if the franchisee is a corporation, partnership, limited liability company, or other business entity, the owners must personally guarantee the obligations under the Franchise Agreement. They must also agree to be personally bound by, and personally liable for the breach of, every provision of the Franchise Agreement. This "Guaranty and Assumption of Obligations" is attached to the Franchise Agreement as Exhibit C.

This means that while the spouse of an individual franchisee is not required to sign a guaranty, the owners of a business entity that is a franchisee must provide a personal guarantee. This is a common practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the business owners in the event of a default or breach of contract.

Prospective franchisees should carefully review Exhibit C of the Franchise Agreement to understand the full scope of the personal guarantee and the obligations it entails. It is also advisable to consult with an attorney to discuss the implications of signing a personal guarantee and to ensure that they are fully aware of their rights and responsibilities.