In the Cool Binz franchise agreement, what personal information is collected from the spouse(s) of the franchisee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE: IF FRANCHISEE IS A CORPORATION, EACH OF FRANCHISEE'S SHAREHOLDERS AND THEIR SPOUSES MUST EXECUTE THE FOLLOWING UNDERTAKING. IF FRANCHISEE IS A PARTNERSHIP, EACH OF FRANCHISEE'S GENERAL PARTNERS AND THEIR SPOUSES MUST EXECUTE THE FOLLOWING UNDERTAKING. IF FRANCHISEE IS A LIMITED LIABILITY COMPANY, EACH OF FRANCHISEE'S MEMBERS AND MANAGERS AND THEIR SPOUSES MUST EXECUTE THE FOLLOWING UNDERTAKING.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if the franchisee is a corporation, partnership, or limited liability company, the spouses of the franchisee's shareholders, general partners, members, and managers must execute a personal guaranty. While the FDD excerpt specifies that spouses must execute this undertaking, it does not detail what specific personal information is collected from them as part of this process.
Typically, a personal guaranty requires the spouse to provide information such as their full legal name, address, social security number, and financial information to assess their ability to cover the franchisee's obligations. This information is used to ensure that the franchisor has recourse to personal assets in the event that the Cool Binz franchise defaults on its financial obligations.
Prospective Cool Binz franchisees should carefully review the personal guaranty document and consult with legal and financial advisors to understand the full extent of their and their spouses' obligations. It is important to clarify exactly what information will be required from the spouse and how that information will be used and protected by Cool Binz.