Does the Craters & Freighters Franchise Agreement include an Owner's Guaranty & Assumption of Franchisee's Obligations as an exhibit?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Franchise Agreement includes an exhibit for the Owner's Guaranty & Assumption of Franchisee's Obligations. This document is listed as Attachment E to the Franchise Agreement.
This attachment likely requires the owner of the franchise to personally guarantee the obligations of the franchisee entity. This is a common practice in franchising, especially when the franchisee is a corporation or limited liability company. The personal guarantee ensures that Craters & Freighters has recourse to the owner's personal assets if the franchise fails to meet its financial or contractual obligations.
Prospective franchisees should carefully review this document with their legal and financial advisors to fully understand the extent of their personal liability. They should also consider the implications of this guarantee on their personal assets and financial planning.