In what form should the personal guaranty be for a Clear Pest Pros franchise?

According to Clear Pest Pros' 2025 Franchise Disclosure Document, if the franchisee is a legal entity such as a partnership, LLC, or corporation, all general partners, members, and direct/indirect equity holders must execute a personal guaranty. This guaranty ensures the full payment and performance of the legal entity's obligations to Clear Pest Pros. These individuals are bound, individually, jointly, and severally, by all terms of the Franchise Agreement, including restrictions on assignment. The personal guaranty must be in the form attached as Exhibit A-3 to the Franchise Agreement or in another form that Clear Pest Pros may prescribe from time to time.

In practical terms, this means that if you plan to operate your Clear Pest Pros franchise through a business entity, you and your partners or shareholders will be personally responsible for the franchise's financial and operational obligations. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or non-compliance. The "jointly and severally" aspect means that each guarantor can be held liable for the entire debt or obligation, regardless of their ownership percentage or involvement in the business.

Prospective Clear Pest Pros franchisees should carefully review Exhibit A-3 to understand the full scope of the personal guaranty. They should also consult with an attorney and financial advisor to assess the potential risks and liabilities associated with signing such a guaranty. It is important to note that Clear Pest Pros retains the right to modify the form of the guaranty, so franchisees should stay informed of any changes.