What section of the Crisp & Green Franchise Agreement outlines the requirement for a guarantee of franchisee obligations?

According to Crisp & Green's 2024 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including the guarantee of franchisee obligations. Specifically, Section 18.16 of the Franchise Agreement details this requirement, with Exhibit A providing further information. This section is listed under 'Other: Guarantee of franchisee obligations' in the table summarizing franchisee obligations.

This means that as a prospective Crisp & Green franchisee, you will be required to fulfill all obligations outlined in the Franchise Agreement. Section 18.16, along with Exhibit A, will specify the terms and conditions of this guarantee. It is important to carefully review these sections to understand the full scope of your responsibilities and potential liabilities.

Furthermore, the FDD notes that each individual who is a 'Principal Owner' (generally owning 10% or greater interest) and their spouse must sign a non-competition, non-disclosure, and proprietary rights agreement (Exhibit D) and an agreement assuming and agreeing to discharge all obligations of the franchisee under the Franchise Agreement (Exhibit E). This indicates that not only the franchisee entity but also its principal owners are personally guaranteeing the franchisee's obligations. Principal Owners also have direct obligations under the Franchise Agreement.

Prospective franchisees should pay close attention to Section 18.16 and Exhibits A, D, and E of the Franchise Agreement to fully understand the implications of the guarantee. It is advisable to seek legal counsel to review these documents and ensure a clear understanding of the obligations and potential risks involved.