In the context of the Southern Steer Personal Guaranty, what agreement exists between the Franchisor and Franchisee?

According to the 2025 Southern Steer Franchise Disclosure Document, the Personal Guaranty agreement stipulates that if the franchisee is a corporation, partnership, limited liability company, or other entity, Southern Steer will require the franchisee's officers, directors, shareholders, partners, members, managers, owners, and owner's spouses or domestic partners to sign a Personal Guaranty. This agreement is attached to the Franchise Agreement as Attachment C. Additionally, each of the franchisee's owners will execute the Personal Guaranty.

This means that if a franchisee operates their Southern Steer business under a business entity, the franchisor requires a personal guarantee from the individuals associated with that entity. This is a common practice in franchising, as it ensures that individuals with a vested interest in the business are personally liable for the franchise's obligations under the Franchise Agreement.

The personal guaranty serves as a form of security for Southern Steer, ensuring that there is recourse beyond the business entity itself in case of default or breach of contract. This protects Southern Steer's interests and the integrity of its franchise system. Prospective franchisees should carefully review the Personal Guaranty to understand the full extent of their obligations and potential liabilities.