Is the Guaranty a separate agreement from the Gold Star Franchise Agreement?

According to Gold Star's 2025 Franchise Disclosure Document, the Guaranty is included as an exhibit to the Franchise Agreement. Specifically, Exhibit B to the Franchise Agreement is the Franchise Agreement itself, which includes a Guaranty as its Exhibit B. This means that the Personal Guaranty is not a stand-alone, separate agreement but rather an integral part of the overall Franchise Agreement.

This arrangement has important implications for prospective Gold Star franchisees. Because the Guaranty is part of the Franchise Agreement, it is legally intertwined with the main contract. Individuals signing the Guaranty (typically owners or major stakeholders in the franchisee entity) are committing to be personally responsible for the financial and operational obligations of the franchise. This personal liability extends to all aspects of the Franchise Agreement, ensuring that Gold Star has recourse to the personal assets of the guarantor if the franchise fails to meet its obligations.

Therefore, anyone considering becoming a Gold Star franchisee should carefully review the terms of the Franchise Agreement and the attached Guaranty. Understanding the full scope of personal liability is crucial before signing these documents. Franchisees should seek legal counsel to fully understand their obligations and potential risks associated with the Guaranty.