Does City Wide require a Spousal Guaranty and Assumption of Obligations as part of the franchise agreement?
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, spouses or domestic partners of principals, owners, or stockholders are 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 entity that is becoming a City Wide franchisee, your spouse or partner will need to sign a Spousal Guaranty and Assumption of Obligations. By signing this guaranty, the spouse or domestic partner agrees to be held personally liable for the financial obligations of the franchise.
The Spousal Guaranty ensures that City Wide has additional security for the franchisee's financial obligations. It is a common practice in franchising to seek such guarantees, especially when the franchise is owned by a legal entity, to ensure that there is recourse to personal assets if the business entity fails to meet its financial responsibilities. Prospective franchisees should carefully review the terms of the guaranty with their legal and financial advisors to understand the full extent of the obligations being assumed.