Does Floyds 99 require a Guaranty and Assumption of Franchisee's Obligations form to be signed?

According to the 2025 Floyds 99 Franchise Disclosure Document, the franchise agreement includes a requirement for a Guaranty and Assumption of Franchisee's Obligations under specific circumstances. If the franchisee is an entity, all of the owners of the franchisee must sign the Guaranty and Assumption of Franchisee's Obligations, which is attached to the agreement as Exhibit II. This means that if the Floyds 99 franchise is owned by a corporation, LLC, or other business entity, each individual who owns a stake in that entity will be required to personally guarantee the franchise's obligations to Floyds 99.

This requirement is a fairly standard practice in franchising, as it provides the franchisor with an additional layer of security. By having the owners of the franchisee personally guarantee the obligations, Floyds 99 can pursue those individuals' assets if the franchise fails to meet its financial or contractual responsibilities. This reduces the risk to Floyds 99 and ensures that there are responsible parties who are personally invested in the success of the franchise.

For a prospective Floyds 99 franchisee, this means that if you plan to operate the franchise through a business entity, you and all other owners should be aware that you will be personally liable for the franchise's debts and obligations. It is important to carefully review the Guaranty and Assumption of Franchisee's Obligations form (Exhibit II) with a legal advisor to fully understand the scope of the guarantee and its potential implications. You should also consider the financial risks involved and ensure that you are comfortable with the level of personal liability you are assuming.