factual

In the Spray Net franchise agreement, is a signature from a spouse required?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

NOTE: IF FRANCHISEE IS A CORPORATION, LIMITED LIABILITY COMPANY OR OTHER BUSINESS ENTITY, THEN EACH INDIVIDUAL/ENTITY WITH AN OWNERSHIP INTEREST IN FRANCHISEE (PRINCIPALS/MEMBERS/SHAREHOLDERS/MANAGERS/ PARTNERS/ETC.) AND THEIR RESPECTIVE SPOUSES MUST EXECUTE THIS FORM OF PERSONAL GUARANTY. IF FRANCHISEE IS AN INDIVIDUAL AND FRANCHISEE'S SPOUSE HAS NOT SIGNED THE FRANCHISE AGREEMENT DIRECTLY, THEN FRANCHISEE'S SPOUSE MUST EXECUTE THIS FORM OF PERSONAL GUARANTY.

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

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

This requirement ensures that Spray Net has recourse to the personal assets of both the franchisee and their spouse in the event of financial difficulties or breaches of the franchise agreement. The Personal Guaranty essentially makes the spouse a guarantor of the franchisee's obligations under the agreement.

For a prospective Spray Net franchisee, this means that if you are married and operating under a business entity or as an individual where you are the sole signatory, your spouse will also need to sign the Personal Guaranty. This is a significant legal obligation, as it could expose the spouse's personal assets to risk if the franchise fails or if the franchisee does not meet their financial obligations to Spray Net. It is important for both the franchisee and their spouse to fully understand the implications of the Personal Guaranty before signing the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.