Do all owners of the proposed assignee of a Fly To Fit franchise have to provide a guaranty?

According to Fly To Fit's 2024 Franchise Disclosure Document, if a franchisee seeks to transfer their franchise to a new owner (assignee), all owners of the proposed assignee must provide a guaranty. This requirement is one of the conditions Fly To Fit may impose when granting consent for the transfer.

This means that each individual with an ownership stake in the entity taking over the Fly To Fit franchise must personally guarantee the financial and operational obligations of the franchise agreement. This guaranty is in accordance with Section 2.5 of the franchise agreement, suggesting a standardized form or process for providing such guarantees.

For a prospective franchisee, this condition highlights the importance of carefully vetting potential assignees and ensuring they are willing and able to meet this requirement. It also underscores the personal financial commitment expected from anyone involved in owning a Fly To Fit franchise, even indirectly through an ownership stake in a corporate entity. This is a fairly standard practice in franchising, as it provides the franchisor with additional security and recourse in case of franchisee default.