If the Franchisee is an entity, what document must each Owner of a Crave Cookies franchise sign?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.5 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to Crave Cookies Franchising, in the form of Attachment 3.
- 2.6 No Conflict. Franchisee represents to Crave Cookies Franchising that Franchisee and each of its Owners (i) are not violating any agreement (including any confidentiality or non-competition covenant) by entering into or performing under this Agreement, (ii) are not a direct or indirect owner of any Competitor, and (iii) are not listed or "blocked" in connection with, and are not in violation under, any anti-terrorism law, regulation, or executive order.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, if the franchisee is a business entity, each owner must sign a personal guaranty. This guaranty ensures that each owner is personally responsible for the franchisee's financial and contractual obligations to Crave Cookies. The specific form of the guaranty is included as Attachment 3 to the Franchise Agreement.
This requirement is a standard practice in franchising, as it provides the franchisor with additional security. By having each owner personally guarantee the franchisee's obligations, Crave Cookies reduces its risk in case the business entity fails to meet its commitments. This personal guarantee extends to all obligations the franchisee owes to Crave Cookies.
Prospective franchisees should carefully review Attachment 3 to understand the full scope of the personal guaranty. They should also consult with an attorney or financial advisor to assess the potential risks and liabilities associated with signing such a document. Franchisees should also be aware that they must represent that they are not violating any existing agreements by entering into the agreement with Crave Cookies.