If the franchisee for a Desi District franchise is an entity, what must the franchisee do regarding a personal guaranty?

According to Desi District's 2024 Franchise Disclosure Document, if the franchisee is an entity, each owner must sign a personal guaranty of the franchisee's obligations to Desi District Franchise Group. This guaranty must be in the form of Attachment 3 to the Franchise Agreement.

The personal guaranty ensures that Desi District has recourse to the personal assets of the owners of the franchisee entity should the business fail to meet its financial or other obligations under the Franchise Agreement. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and demonstrates the owners' commitment to the success of the franchise.

The Guaranty and Non-Compete Agreement included as Attachment 3 specifies that the guarantor owns an equity interest in the franchisee and is executing the guaranty to induce Desi District Franchise Group to enter into the Franchise Agreement. The guarantor unconditionally guarantees that the franchisee will pay and perform every undertaking, agreement, and covenant set forth in the Franchise Agreement and further guarantees every other liability and obligation of the franchisee to Desi District Franchise Group, whether or not contained in the Franchise Agreement.