What is the Fitstop franchisee required to ensure regarding the Personal Guarantee attached as Schedule 3?

According to the 2024 Fitstop Franchise Disclosure Document, if the franchisee is a business entity, they must identify each individual or other entity that owns or holds any ownership interest in the Fitstop franchise in Schedule 1. The franchisee must ensure each Franchise Owner executes the form of Personal Guarantee attached to the Franchise Agreement as Schedule 3, also known as the "Personal Guaranty" or "Guaranty".

This requirement means that all individuals with an ownership stake in the Fitstop franchise must personally guarantee the obligations of the franchise. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract by the franchisee. By having each owner sign a personal guarantee, Fitstop ensures that they can pursue the personal assets of the owners if the business entity fails to meet its financial or contractual obligations.

For a prospective Fitstop franchisee, this means that they and any other owners of the franchise will be personally liable for the debts and obligations of the business. It is crucial to carefully review the terms of the Personal Guarantee and understand the full extent of the personal liability being assumed. Franchisees should seek legal and financial advice to fully understand the implications of signing a personal guarantee before entering into a franchise agreement with Fitstop.