Does the Cream Guaranty include confidentiality requirements for the Guarantor?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
By signing below, the undersigned spouse of each Guarantor indicated below, acknowledges and consents to the guaranty given herein by his/her spouse and personally agrees to be bound by the obligations in the Agreement regarding confidential information (Section 3.A) and the restrictive covenants regarding non-competition, non-interference, and non-disparagement (Sections 3 and 5.D). Such consent also serves to bind the assets of the marital estate to Guarantor's performance of this Guaranty. We confirm that a spouse who signs this Guaranty solely in his or her capacity as a spouse (and not as an owner) is signing merely for the purposes described above and, as necessary, to bind the assets of the marital estate as described herein and for no other purpose (including, without limitation, to bind the spouse's own separate property).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the Cream Guaranty includes confidentiality requirements for the Guarantor. Specifically, if the Guarantor is married, the spouse's signature on the Guaranty indicates their agreement to be bound by the confidentiality obligations outlined in the Franchise Agreement.
The FDD states that by signing the Guaranty, the spouse "personally agrees to be bound by the obligations in the Agreement regarding confidential information (Section 3.A) and the restrictive covenants regarding non-competition, non-interference, and non-disparagement (Sections 3 and 5.D)." This means the spouse is legally obligated to maintain the confidentiality of Cream's proprietary information, and adhere to non-compete and non-disparagement clauses. This obligation extends to protecting Cream's trade secrets and other sensitive business data.
This requirement ensures that Cream's confidential information is protected even within the guarantor's household. The inclusion of these stipulations in the Guaranty underscores the importance Cream places on safeguarding its business practices, trade secrets, and reputation. Prospective franchisees should carefully review Section 3.A, Sections 3 and 5.D of the Franchise Agreement to fully understand the scope of these confidentiality and other related obligations for both themselves and their guarantors (including spouses).