What form does the personal guarantee take for a Face Foundrie franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, partnership or limited liability company, your owners will have to guarantee your obligations and be obligated to comply with the terms of the franchise agreement and ancillary documents described in this Disclosure Document.
We may require each of your owners and their spouses to personally guarantee, on a joint and several basis, your obligations to us under the Franchise Agreement. The guarantees will be in the form of the Guaranty, Indemnification, and Acknowledgement attached as Exhibit C to the Franchise Agreement.
Franchisees must sign a personal guaranty, making you and your spouse individually liable for your financial obligations under the agreement if you are married.
The guaranty will place your and your spouse's marital and personal assets at risk, perhaps including your house, if your franchise fails.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, if you are a corporation, partnership, or limited liability company, your owners will have to guarantee your obligations to Face Foundrie under the Franchise Agreement. Item 15 of the FDD states that Face Foundrie may require each of your owners and their spouses to personally guarantee, on a joint and several basis, your obligations to them under the Franchise Agreement.
The personal guarantees will be in the form of the Guaranty, Indemnification, and Acknowledgement attached as Exhibit C to the Franchise Agreement. This means that the owners and their spouses could be held individually responsible for the franchise's debts and obligations to Face Foundrie.
Item 17 of the FDD further clarifies that franchisees must sign a personal guaranty, making you and your spouse individually liable for your financial obligations under the agreement if you are married. This guaranty puts the franchisee's and their spouse's marital and personal assets at risk, potentially including their house, if the Face Foundrie franchise fails. Prospective franchisees should carefully review Exhibit C to fully understand the scope and implications of the personal guarantee.