What document must be signed to personally guarantee the obligations of a Monicals Pizza franchise?

According to the 2025 Monicals Pizza Franchise Disclosure Document, individuals holding a legal or beneficial interest of 5% or greater in a Monicals Pizza franchise must sign the "Unlimited Guaranty and Assumption of Obligations." This document, attached as Exhibit 3 to the Franchise Agreement, requires these individuals to assume and fulfill all of the franchisee's obligations under the Franchise Agreement. They also become personally liable for all such obligations.

This requirement has significant implications for prospective Monicals Pizza franchisees who plan to operate under a corporate entity or with multiple owners. Any individual with a substantial ownership stake (5% or more) will be held personally responsible for the financial and operational performance of the franchise. This is a common practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the owners, not just the business assets of the franchisee entity.

For potential franchisees, it is crucial to carefully review Exhibit 3, the "Unlimited Guaranty and Assumption of Obligations," to fully understand the scope of personal liability. Franchisees should seek legal counsel to assess the risks and implications before signing this document. This requirement underscores the importance of thorough due diligence and a solid business plan, as the personal assets of the owners are directly tied to the success of the Monicals Pizza franchise.