factual

If the franchisee is an entity, what must Fly To Fit Franchise have each owner sign?

Q: If the franchisee is an entity, what must Fly To Fit Franchise have each owner sign?

- **2.5 Guaranty.** If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to Fly To Fit Franchise, in the form of Attachment 3. - **2.6 No Conflict.** Franchisee represents to Fly To Fit Franchise that Franchisee and each of its Owners (i) are not violating any agreement (including any confidentiality or non-competition covenant) by entering into or performing under this Agreement, (ii) are not a direct or indirect owner of any Competitor, and (iii) are not listed or "blocked" in connection with, and are not in violation under, any anti-terrorism law, regulation, or executive order. Source: Item 22 — CONTRACTS (FDD page 44)

Fly_To_Fit Franchise · 2024 FDD

Answer from 2024 FDD Document

2.5 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to Fly To Fit Franchise, in the form of Attachment 3.
2.6 No Conflict. Franchisee represents to Fly To Fit Franchise that Franchisee and each of its Owners (i) are not violating any agreement (including any confidentiality or non-competition covenant) by entering into or performing under this Agreement, (ii) are not a direct or indirect owner of any Competitor, and (iii) are not listed or "blocked" in connection with, and are not in violation under, any anti-terrorism law, regulation, or executive order.

Source: Item 22 — CONTRACTS (FDD page 44)

What This Means (2024 FDD)

According to Fly To Fit's 2024 Franchise Disclosure Document, if the franchisee is a business entity, Fly To Fit requires each owner to sign a personal guaranty. This guaranty ensures that the owners of the entity are personally liable for the franchisee's obligations to Fly To Fit. The specific form of the guaranty is included as Attachment 3 to the Franchise Agreement.

This requirement is a standard practice in franchising, as it provides Fly To Fit with additional security and recourse in case the franchisee entity fails to meet its financial or contractual obligations. By having each owner sign a personal guaranty, Fly To Fit can pursue the personal assets of the owners to recover any losses or damages.

Prospective franchisees should carefully review Attachment 3 and understand the full extent of their personal liability before signing the Franchise Agreement. It is advisable to consult with an attorney or financial advisor to fully understand the implications of signing a personal guaranty. Franchisees should also be aware that they must represent that they and each of their owners are not violating any existing agreements by entering into the Fly To Fit Franchise Agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

All Fly_To_Fit 2024 FAQs Ask FDD Ninja