Does the Cool Binz franchise agreement allow for any exceptions to the requirement that spouses of shareholders, partners, or members execute the personal guaranty?

According to Cool Binz's 2025 Franchise Disclosure Document, if the franchisee is a corporation, each of the franchisee's shareholders and their spouses must execute the personal guaranty. If the franchisee is a partnership, each of the franchisee's general partners and their spouses must execute the undertaking. If the franchisee is a limited liability company, each of the franchisee's members and managers and their spouses must execute the undertaking.

This requirement ensures that Cool Binz has recourse to the personal assets of the individuals behind the franchise entity, as well as their spouses, to secure the financial obligations and performance under the franchise agreement. This is a common practice in franchising, as it provides an additional layer of security for the franchisor.

A prospective franchisee should carefully consider the implications of this requirement, as it means that their spouse will also be personally liable for the franchise's debts and obligations. Franchisees should discuss this with their spouses and seek legal and financial advice before signing the franchise agreement to fully understand the risks involved.