What is the purpose of the Spousal Guaranty according to City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
e date first above written.
| Signature | Signature |
|---|---|
| Name - | Name - |
| Typed Or Printed | Typed Or Printed |
| Percentage Ownership In Franchisee: | Percentage Ownership In Franchisee: |
| Signature | Signature |
| Name - | Name - |
| Typed Or Printed | Typed Or Printed |
| Percentage Ownership In Franchisee: | Percentage Ownership In Franchisee: |
ATTACHMENT A -2 TO THE FRANCHISE AGREEMENT SPOUSAL GUARANTY AND ASSUMPTION OF OBLIGATIONS
SPOUSAL GUARANTY AND ASSUMPTION OF OBLIGATIONS
| THIS SPOUSAL GUARANTY AND ASSUMPTION OF OBLIGATIONS ("Guaranty"), |
|---|
| made and entered into on, by, |
| ("Spousal Guarantor"), in favor of |
| CITY WIDE FRANCHISE COMPANY, INC., a Kansas corporation |
| ("CITY WIDE"). |
| WHEREAS, Spousal Guarantor is either married to or otherwise legally recognized as the spouse |
| or domestic partner of |
| an owner of |
| ("Franchisee"), a |
| [corporation/partnership/limited liability company], which has entered into that certain |
| Franchise Agreement with CITY WIDE, dated as of even date herewith ("Franchise Agreement"); and |
| WHEREAS, Spousal |
| Guarantor desires to personally and unconditionally guarantee the |
| obligations of Franchisee under the Franchise Agreement, subject to the limitations set forth in this |
| Guaranty |
| guarantee. |
WHEREAS, CITY WIDE desires to accept such guarantee.
NOW, THEREFORE, in consideration of the covenants and conditions herein set forth, and in order to induce CITY WIDE to enter into the Franchise Agreement, the Spousal Guarantor hereby agrees as follows:
SECTION 1. Guaranty. Spousal Guarantor hereby unconditionally guarantees the punctual payment when due, whether at stated maturity, by acceleration, or otherwise, of all obligations of Franchisee now or hereafter existing under the Franchise Agreement, whether for fees, expenses, interest, or otherwise (collectively, "Obligations"), and agrees to pay any and all expenses (including attorney fees and expenses) incurred by CITY WIDE in enforcing any rights under this Guaranty, except to the extent limited by Section 5 below.
SECTION 2. Guaranty Absolute. Spousal Guarantor guarantees that the Obligations will be paid strictly in accordance with the terms of the Franchise Agreement, regardless of any law, regulation, or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of CITY WIDE with respect thereto.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the purpose of the Spousal Guaranty is to ensure the franchisee's obligations under the Franchise Agreement are met. The Spousal Guarantor, who is either married to or legally recognized as the spouse or domestic partner of the franchisee, agrees to guarantee these obligations. This guarantee is made to induce City Wide to enter into the Franchise Agreement with the franchisee.
The Spousal Guarantor unconditionally guarantees the punctual payment of all obligations, including fees, expenses, and interest, now or in the future. The guarantor also agrees to cover any expenses, including attorney fees, that City Wide incurs while enforcing its rights under the Guaranty. This obligation remains regardless of any changes in laws or regulations affecting the terms of the Franchise Agreement.
It is important to note that City Wide includes some limitations to protect the Spousal Guarantor. City Wide agrees not to place liens on the Spousal Guarantor's ownership interest in residences, motor vehicles, retirement accounts such as 401(k)s, pensions, or IRAs. However, City Wide retains the right to collect directly from the Spousal Guarantor to satisfy the obligations to the extent permitted by law, except for the specified limitations.