What representation is made by the Guarantor regarding their marital status in the Cream Guaranty?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor represents and warrants that, if no signature appears below for such Guarantor's spouse, such Guarantor is either not married or, if married, is a resident of a state which does not require the consent of both spouses to encumber the assets of a marital estate.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, each guarantor makes a representation and warranty regarding their marital status. Specifically, if the spouse of a guarantor does not sign the Guaranty, the guarantor represents that they are either not married or, if married, reside in a state that does not require spousal consent to encumber marital assets.
This is a crucial aspect of the guaranty because it determines whether the assets of the marital estate can be pursued in the event Cream needs to enforce the guaranty. If a guarantor is married and lives in a state where spousal consent is required to encumber marital assets, the spouse's signature on the Guaranty is necessary to bind those assets.
For a prospective Cream franchisee, this means carefully considering the implications of the Guaranty based on their marital status and state of residence. If married, they should understand whether their state requires spousal consent to encumber marital assets and ensure that the appropriate signatures are obtained to avoid potential issues with enforcement of the Guaranty.