Does the City Wide Franchise Agreement include a Spousal Guaranty and Assumption of Obligations as an attachment?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
All partners, shareholders, officers, and directors of the entity executing the Franchise Agreement are required to execute the Guaranty and Assumption of Obligations which is attached to this Franchise Agreement as Attachment A-1. Additionally, spouses or domestic partners of principals, owners or stockholders will be required to provide a conditional guaranty of payment in the form attached to this Agreement as Attachment A-2.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Franchise Agreement does include a Spousal Guaranty and Assumption of Obligations as an attachment. Specifically, Section 25 of the Franchise Agreement states that spouses or domestic partners of principals, owners, or stockholders will be required to provide a conditional guaranty of payment. This guaranty is included as Attachment A-2 to the Franchise Agreement.
This requirement means that if you are married or have a domestic partner and are a principal, owner, or stockholder in the City Wide franchise, your spouse or partner will likely need to sign a Spousal Guaranty and Assumption of Obligations. This document essentially makes the spouse or partner responsible for the financial obligations of the franchise under certain conditions.
The Spousal Guaranty ensures that City Wide has an additional party to pursue in case the franchisee defaults on their financial obligations. It is important for both the franchisee and their spouse or partner to carefully review this document and understand its implications before signing the Franchise Agreement. Franchisees should seek legal counsel to fully understand the extent of the obligations and potential liabilities created by the Spousal Guaranty.