Who must sign the Principal Owner's Guaranty for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Guaranty must be signed by the principal owners (referred to as "you" for purposes | ||
|---|---|---|
| of this Guaranty only) of(the "Business Entity") under the | ||
| Agreement | dated | , 20 (the |
| "Agreement") with CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC., with its | ||
| principal place of business at 25110 Bernwood Drive, Suite #104, Bonita Springs, Florida 34135 | ||
| ("us," or "our" or "we"). |
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, the Principal Owner's Guaranty must be signed by the principal owners of the business entity under the Franchise Agreement. For the purposes of the Guaranty, these principal owners are referred to as "you". This agreement is made with Creative World Schools Franchising Company, Inc., which has its principal place of business in Bonita Springs, Florida.
In practical terms, this means that if the franchisee is a corporation, LLC, or other business entity, the individuals who are the principal owners of that entity must personally guarantee the obligations of the franchise agreement. This is a common practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the individuals who control the franchisee entity, rather than being limited to the assets of the business entity itself.
Prospective Creative World School franchisees should carefully review the Principal Owner's Guaranty and understand the full extent of their personal obligations before signing the Franchise Agreement. It is advisable to consult with an attorney or financial advisor to fully understand the implications of providing a personal guarantee. Franchisees should also confirm who the franchisor considers to be the 'principal owners' requiring a guarantee, especially in cases of complex ownership structures.