Are spouses or domestic partners of principals, owners, or stockholders of a City Wide franchise required to provide a guarantee, and if so, what kind and where is the form located?

According to City Wide's 2025 Franchise Disclosure Document, spouses or domestic partners of principals, owners, or stockholders are required to provide a guarantee. Specifically, they must provide a conditional guaranty of payment. This guaranty is outlined in a form that is attached to the Franchise Agreement as Attachment A-2.

This requirement means that if you are married or have a legally recognized domestic partner who is a principal, owner, or stockholder in the City Wide franchise, your spouse or partner will need to sign a document guaranteeing certain financial obligations of the franchise. This is a common practice in franchising, as it provides the franchisor with an additional layer of security, ensuring that there is recourse beyond the franchisee entity itself.

The Spousal Guaranty and Assumption of Obligations document specifies that the spouse or domestic partner desires to personally and unconditionally guarantee the obligations of the Franchisee under the Franchise Agreement, subject to the limitations set forth in this Guaranty. This means the spouse's guarantee may have some limitations, which should be carefully reviewed. The document also indicates that the spouse is either married to or otherwise legally recognized as the spouse or domestic partner of an owner of the franchise.

Prospective franchisees should carefully review Attachment A-2 with their legal counsel to fully understand the scope and limitations of the spousal or domestic partner guarantee. Understanding these obligations is crucial before entering into a franchise agreement with City Wide.