Besides the franchisee, who else must sign the Fitstop franchise agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Each of your principal owners and their spouse must sign the franchise agreement as either (a) the franchisee under the Franchise Agreement itself, or (b) a guarantor under the form of personal guaranty attached to said agreement. In either event, by signing the franchise agreement each franchisee owner and their respective spouse(s), as applicable, agree to perform, and guarantees, all the franchisee's obligation to us and our affiliates (including the obligations under this Agreement) and agrees to be bound by the restrictive covenants, the confidentiality provisions and certain other provisions contained in the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 40–41)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, in addition to the franchisee, the franchisee's spouse and principal owners must also sign the franchise agreement. Specifically, each principal owner and their spouse must sign either as the franchisee or as a guarantor.
If signing as a guarantor, they guarantee the franchisee entity's obligations to Fitstop under the agreement. This means that the spouse and principal owners are legally bound to ensure the franchisee fulfills all obligations outlined in the agreement.
By signing the franchise agreement, each franchisee owner and their respective spouse agrees to perform and guarantees all of the franchisee's obligations to Fitstop and its affiliates. They also agree to be bound by the restrictive covenants, confidentiality provisions, and certain other provisions contained within the Franchise Agreement. This ensures that all parties with a significant stake in the franchise are committed to upholding the terms of the agreement and protecting Fitstop's interests.