Does the Exit Franchise Agreement require a Guaranty and Agreement to be Bound by the Terms and Conditions of the Franchise Agreement as part of its schedules?

According to Exit's 2025 Franchise Disclosure Document, the Franchise Agreement includes a Schedule 4 titled "GUARANTY AND AGREEMENT TO BE BOUND BY THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT." This schedule requires the guarantor to ensure payment of all amounts and the performance of all terms and conditions outlined in the Franchise Agreement. The guarantor also agrees to be bound by every term in the Franchise Agreement, including the non-compete provisions in Section 21.

This guaranty extends to payments due to Exit or any of its subsidiaries or affiliates. The obligations of the guarantor are binding on their successors and assigns, remaining in effect regardless of the validity or enforceability of the Franchise Agreement, any collection failures, or any amendments made to the agreement. The subfranchisor is not obligated to seek payment from the franchisee before enforcing the guaranty.

Furthermore, the guarantor is responsible for all legal and other costs incurred by Exit in collecting amounts due under the Franchise Agreement or enforcing the guaranty. This guaranty is for both performance and payment, not just collection. If the franchisee is a corporation, partnership, or limited liability company, all equity holders who have not signed the Franchise Agreement must execute the Personal Guaranty in the form attached as Schedule 4.