Does Dryer Vent Squad require me to personally guarantee the financial and other obligations of the Franchisee?

According to the 2024 Dryer Vent Squad FDD, if you transfer your franchise, each owner of the transferee company must personally execute the Franchise Owner Agreement and Individual Guaranty. This means that if you sell your Dryer Vent Squad franchise, the new owners will be required to sign a personal guarantee, ensuring they are personally liable for the franchise's obligations.

Specifically, the FDD states that the transferee (the buyer of your franchise) will be bound by all terms and conditions of the Franchise Agreement. Furthermore, each owner of the transferee must personally execute both the Franchise Owner Agreement and an Individual Guaranty. This guaranty is attached as Exhibit 1 to the Franchise Agreement, indicating its importance and standardized form.

This requirement ensures that Dryer Vent Squad has recourse to the personal assets of the new franchise owners should the business fail to meet its financial obligations. It is a common practice in franchising to seek personal guarantees, as it provides an additional layer of security for the franchisor. Franchisees should carefully review Exhibit 1 to understand the full scope of the personal guarantee before transferring their franchise.