Is the Guaranty attached as an exhibit to the Gold Star Franchise Agreement?

According to Gold Star's 2025 Franchise Disclosure Document, the Franchise Agreement includes a Guaranty as Exhibit B. Additionally, Exhibit C to the Franchise Agreement is a Personal Guaranty. This means that prospective Gold Star franchisees will find the standard Franchise Agreement, including the guaranty, attached to the disclosure document.

The inclusion of a personal guaranty as part of the franchise agreement is a common practice in the franchise industry. It ensures that the obligations of the franchisee are personally guaranteed by the individual or individuals behind the business, especially if the franchisee is a corporate entity. This provides Gold Star with an additional layer of security, as they can pursue the personal assets of the guarantor in case of default or non-performance by the franchisee.

The Personal Guaranty (Exhibit C) included in the Gold Star Franchise Agreement requires the undersigned to irrevocably and unconditionally guarantee the full payment and performance of all obligations of the franchisee to Gold Star. This includes obligations arising out of the Franchise Agreement or any other agreement between the franchisee and Gold Star. Note 1 in Item 17 states that all holders of an interest in you or in the Franchise must guarantee all of your obligations under the Franchise Agreement and agree to be bound personally by the confidentiality, noncompete and transfer provisions of the Franchise Agreement (see Section 17.2 of and Exhibit B to the Franchise Agreement).