What does the Personal Guaranty unconditionally guarantee regarding the Spray Net Franchise Agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the grant by Franchisor to the Franchisee as herein provided, each of you hereby agree, in consideration of benefits received and to be received by each of you, jointly and severally, and for yourselves, your heirs, legal representatives and assigns, to be firmly bound by all of the terms, provisions and conditions of the foregoing SPRAY-NET Franchise Agreement, and any other agreement between Franchisee and Franchisor and/or its affiliates, and do hereby unconditionally guarantee the full and timely performance by Franchisee of each and every obligation of Franchisee under the aforesaid Franchise Agreement or other agreement between Franchisor and Franchisee, including, without limitation: (i) any indebtedness of Franchisee arising under or by virtue of the aforesaid Franchise Agreement; (ii) the prohibition of any change in the percentage of Franchisee owned, directly or indirectly, by any person, without first obtaining the written consent of Franchisor prior to said proposed transfer as set forth in the Franchise Agreement; (iii) those obligations related to confidentiality, non-disclosure and indemnification; and (iv) the in-term and post-term covenants against competition, as well as all other restrictive covenants set forth in the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Personal Guaranty ensures the franchisee's full and timely performance of all obligations under the Franchise Agreement and any other agreements with Spray Net or its affiliates. This guarantee is unconditional, meaning it applies regardless of circumstances.
Specifically, the guarantee covers any debt the franchisee incurs under the Franchise Agreement. It also addresses maintaining ownership percentages, requiring Spray Net's written consent before any ownership changes. Furthermore, the guarantee extends to obligations related to confidentiality, non-disclosure, and indemnification, protecting Spray Net's sensitive information and ensuring the franchisee covers any liabilities arising from their actions.
Finally, the Personal Guaranty includes in-term and post-term covenants against competition, as well as all other restrictive covenants outlined in the Franchise Agreement. This prevents franchisees from competing with Spray Net during and after the franchise term, safeguarding Spray Net's market position and business interests. Principals, members, shareholders, managers, partners, and their respective spouses must execute the Personal Guaranty.