Which individuals associated with the franchisee must sign an agreement guaranteeing the franchisee's obligations under the Franchise Agreement for a City Wide franchise?

According to City Wide's 2025 Franchise Disclosure Document, several individuals associated with the franchisee may be required to sign an agreement guaranteeing the franchisee's obligations under the Franchise Agreement. Specifically, if the franchisee is a partnership, each partner must sign a guarantee. If the franchisee is a corporation, each shareholder, director, and officer must sign. Similarly, if the franchisee is a limited liability company, each member must sign a guarantee. This requirement ensures that City Wide has recourse to the personal assets of these individuals should the franchise default on its obligations.

In addition to the above, the franchisee's manager may also be required to sign a Guaranty and Assumption of Obligations. The manager must meet certain qualifications, including holding at least a 20% ownership interest in the franchisee (or the entity that owns the franchise) and meeting City Wide's current qualifications for new franchisees. The manager must also sign the Confidentiality Agreement and the Non-Compete Agreement.

Furthermore, each partner, shareholder, director, officer, or member of a Franchisee and, if applicable, any spouses or domestic partners of each partner, shareholder, director, officer, or member of Franchisee and Manager must sign the Non-Compete Agreement contained in the Franchise Agreement. This broad requirement ensures that all key individuals associated with the franchise are bound by the non-compete provisions, protecting City Wide's interests. Prospective franchisees should carefully review Attachment A to the Franchise Agreement, as referenced in Item 15, to fully understand the scope and terms of the required guarantee agreement.