What agreement must Spray Net franchisees ensure their officers and directors execute?

According to Spray Net's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, or other business entity, each individual or entity with an ownership interest in the franchisee, as well as their respective spouses, must execute a Personal Guaranty. This requirement extends to principals, members, shareholders, managers, and partners. If the franchisee is an individual and their spouse has not signed the franchise agreement directly, then the franchisee's spouse must also execute the Personal Guaranty.

The Personal Guaranty ensures that these individuals are personally liable for the franchisee's obligations under the Franchise Agreement. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case the franchisee defaults on its obligations. By requiring the owners and their spouses to sign the guaranty, Spray Net aims to ensure that those who benefit from the franchise's operation are also personally invested in its success and compliance with the agreement.

Prospective Spray Net franchisees should carefully review the Personal Guaranty and understand the full extent of their personal liability before signing the Franchise Agreement. They should also consult with an attorney or financial advisor to assess the risks and implications of providing a personal guarantee. This requirement highlights the importance of thoroughly understanding all aspects of the franchise agreement and related documents before making a final decision.