What is the name of the document a spouse must sign if the Fly Fitness franchisee is married?

According to Fly Fitness's 2024 Franchise Disclosure Document, if a franchisee is married, their spouse is required to sign a 'Personal Guaranty.' This document is included as Attachment 7 to the Franchise Agreement. This requirement ensures that the spouse is also legally bound to uphold the financial obligations and other terms outlined in the Franchise Agreement.

In practical terms, the Personal Guaranty means that the spouse is personally liable for the debts and obligations of the Fly Fitness franchise. If the franchisee defaults on payments or fails to meet other contractual requirements, Fly Fitness can pursue the spouse's personal assets to recover any losses. This is a significant commitment and should be carefully considered.

Franchisors often require a spousal guarantee to protect their interests, especially in community property states, where assets acquired during the marriage are jointly owned. By having the spouse sign a Personal Guaranty, Fly Fitness aims to ensure that all available assets are accessible in case of default, thereby reducing the risk to the franchise system. Prospective franchisees should seek legal counsel to fully understand the implications of signing such a guarantee.