If an owner's spouse is also an owner of the Floyds 99 franchisee, must the spouse sign a guaranty?

According to the 2025 Floyds 99 Franchise Disclosure Document, if an owner's spouse is also an owner of the franchisee, the spouse must sign a guaranty. This guaranty is attached as Exhibit II to the Franchise Agreement. This requirement ensures that all individuals with an ownership stake in the Floyds 99 franchise are personally liable for the franchisee's obligations under the Franchise Agreement.

This requirement is fairly standard in franchising, as franchisors typically seek to ensure that all owners are committed to the business and are willing to be held accountable for its performance. By requiring a personal guaranty, Floyds 99 aims to protect its interests and ensure that franchisees fulfill their contractual obligations. The personal guaranty provides an additional layer of security for Floyds 99, as it allows them to pursue the personal assets of the owners in the event of a default by the franchisee.

Prospective franchisees should carefully review Exhibit II to the Franchise Agreement to understand the full scope of the guaranty and the obligations it entails. It is advisable to seek legal counsel to fully understand the implications of signing a personal guaranty before entering into a franchise agreement with Floyds 99. Franchisees should also consider the potential risks and rewards of having a spouse as a co-owner, as it could impact their personal liability and financial exposure.