What is the required action for a spouse of a married Fly Fitness franchisee?
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 requirement ensures that the spouse is also legally bound to uphold the financial obligations of the franchise.
This is a fairly standard practice in franchising. By signing the Personal Guaranty, the spouse agrees to be personally liable for the debts and obligations of the Fly Fitness franchise if the franchisee defaults. This protects Fly Fitness by expanding the pool of assets that can be used to recover any losses.
Prospective franchisees should carefully review Attachment 7 of the Franchise Agreement and understand the implications of the Personal Guaranty before signing. It is advisable for both the franchisee and their spouse to seek legal counsel to fully understand their obligations and potential liabilities under the agreement.