Is the Guaranty included as Schedule 4 of the Exit Franchise Agreement?

According to Exit's 2025 Franchise Disclosure Document, the Guaranty and Agreement to be bound by the terms and conditions of the Franchise Agreement is included as Schedule 4 of the Exit Franchise Agreement. This is explicitly stated in the list of schedules attached to the agreement. Other schedules include Franchise Information, the Exit Formula, Description of Protected Territory, and Associate Profile.

This means that if a franchisee operates as a corporation, partnership, or limited liability company, individuals executing the agreement must remain personally liable for all obligations. Equity holders who haven't signed the agreement must execute the Personal Guaranty in the form attached as Schedule 4. This ensures that Exit has recourse to the personal assets of the franchisee or its equity holders if the business entity fails to meet its financial or contractual obligations.

The guarantor agrees to be bound by every term in the Franchise Agreement, including the non-compete clause in Section 21. The guarantor also guarantees payment of all amounts due to Exit or its subsidiaries or affiliates. This obligation remains in effect regardless of the validity of the Franchise Agreement, any collection efforts, or any bankruptcy proceedings involving the franchisee. The subfranchisor isn't obligated to seek payment from the franchisee before enforcing the Guaranty.

This requirement is fairly standard in franchising, as franchisors want to ensure that there is a responsible party who is personally invested in the success of the franchise and can be held accountable for its performance. Prospective Exit franchisees should carefully review the Guaranty and understand the full extent of their personal obligations before signing the Franchise Agreement.