If the Expense Reduction Analysts franchisee is not an individual, who must guarantee payments or performance?

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, if the franchisee is not an individual, each of the direct and indirect owners must guarantee the payments or performance of the franchise agreement. This requirement is further detailed in Exhibit 2 of the Franchise Agreement. Spouses of interest holders in the Consulting Business are not required to sign the guaranty.

This means that if a business entity such as a corporation, partnership, or limited liability company becomes an Expense Reduction Analysts franchisee, all individuals with direct or indirect ownership in that entity must personally guarantee the financial obligations and overall performance of the franchise. This is a common practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the owners should the business entity fail to meet its obligations.

Prospective Expense Reduction Analysts franchisees should carefully review Exhibit 2 of the Franchise Agreement to fully understand the scope and implications of this personal guarantee. They should also consult with legal and financial advisors to assess the potential risks and liabilities associated with providing such a guarantee. Understanding these obligations is crucial before entering into a franchise agreement with Expense Reduction Analysts.