Are the owners of a proposed assignee of an Endless Summer Sweets franchise required to provide a guaranty?

Based on the 2024 Endless Summer Sweets FDD, a Guaranty and Non-Compete Agreement is executed by the undersigned person(s) (each, a "Guarantor") in favor of Endless Summer Sweets Franchising, Inc. This agreement includes covenants not to compete, restricting the Guarantor from involvement with any competitor during the term of the Franchise Agreement and for two years after the agreement expires or is terminated. These restrictions apply to ownership, lending money, providing services, or being employed by a competitor within a 25-mile radius of the Endless Summer Sweets location.

The Franchise Agreement requires that the tenant assign the lease to Endless Summer Sweets if the Franchise Agreement between Endless Summer Sweets and the tenant is terminated during the lease term. The landlord consents to this assignment. Additionally, the tenant has the right to assign or sublet the lease to Endless Summer Sweets, but this does not relieve the tenant or any guarantor of liability under the lease.

While the FDD excerpts discuss the requirements for guarantors and the conditions under which a lease can be assigned to Endless Summer Sweets or its franchisees, it does not explicitly state whether the owners of a proposed assignee of an Endless Summer Sweets franchise are required to provide a guaranty. To fully understand the requirements for assignees, prospective franchisees should seek clarification from Endless Summer Sweets regarding the specific obligations and qualifications for those assuming an existing franchise.