Where is the Personal Guaranty attached in the Fly Fitness Franchise Agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
If you are a married individual, your spouse must sign our Personal Guaranty, which is attached to our Franchise Agreement as Attachment 7.
Source: Item 15 — OBLIGATIONS OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 33)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if a franchisee is married, their spouse must sign a Personal Guaranty. This guaranty is included as Attachment 7 to the Franchise Agreement. This means that the spouse is guaranteeing the franchisee's obligations under the agreement.
This requirement has significant implications for married franchisees. The spouse's personal assets could be at risk if the Fly Fitness franchise fails or if the franchisee breaches the Franchise Agreement. The Personal Guaranty essentially makes the spouse jointly liable for the franchisee's debts and obligations to Fly Fitness.
Franchisees should carefully review the Personal Guaranty with their spouse and an attorney to fully understand the potential financial risks involved. It is a standard practice in franchising for franchisors to require personal guarantees to ensure that franchisees are fully committed to the business and to provide an additional layer of financial security for the franchisor.