For Craters & Freighters, what is the requirement regarding the Owner's Guaranty and Assumption of Obligations?

According to Craters & Freighters's 2025 Franchise Disclosure Document, each owner of the franchisee entity must execute an Owner's Guaranty and Assumption of Obligations. This agreement, outlined in Attachment E of the Franchise Agreement, ensures that the owners personally guarantee all obligations and duties of the franchisee. The franchisee and each owner must also confirm the accuracy of the entity ownership percentages as stated in Attachment E.

In simpler terms, this means that if you own a Craters & Freighters franchise through a business entity (like an LLC or corporation), you, as the owner, must personally guarantee that the franchise will meet all its financial and operational obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security, ensuring that there is a responsible party who is personally liable for the franchise's performance.

Attachment E, which contains the specific form of the Owner's Guaranty and Assumption of Obligations, is a crucial document for prospective franchisees to review carefully. It details the extent of the personal guarantee and the specific obligations that the owner is assuming. Understanding this document is essential for assessing the personal financial risk involved in owning a Craters & Freighters franchise.