What attachment to the Craters & Freighters Franchise Agreement contains the Owner's Guaranty and Assumption of Obligations?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
ATTACHMENTS:
- A. Territory, Initial Franchise Fee, and Premises
- B. Minimum Performance Standards and Minimum Monthly Royalty Fees
- C. EFT Authorization Form
- D. Form of Collateral Assignment of Lease and Addendum
- E. Owner's Guaranty & Assumption of Franchisee's Obligations
- F. Confidentiality and Non-Competition Agreement
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Owner's Guaranty and Assumption of Obligations is found in Attachment E to the Franchise Agreement. This attachment is a standard legal document where the owner(s) personally guarantee the franchisee's obligations under the Franchise Agreement.
This means that if the franchise is owned by a corporation or LLC, the individual owners are still personally responsible for ensuring the franchise complies with the agreement. This personal guarantee is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract by the franchisee.
Prospective Craters & Freighters franchisees should carefully review Attachment E with their legal counsel to fully understand the scope of their personal obligations and potential liabilities. They should also ensure that the ownership percentages listed in Attachment E are accurate, as these percentages may affect the extent of their personal guarantee.