Which exhibit in the Stretch Zone Franchise Agreement outlines the guaranty obligation?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Franchise Disclosure Document ITEM |
|---|---|---|
| z. Guaranty | Exhibit G | ITEM 1 |
Source: Item 9 — ITEM -9 FRANCHISEE'S OBLIGATIONS (FDD pages 33–36)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, Exhibit G of the Franchise Agreement outlines the guaranty obligation. This is further referenced in ITEM 1 of the Franchise Disclosure Document.
In practical terms, this means that prospective Stretch Zone franchisees should carefully review Exhibit G to understand the full scope of their guaranty obligations. A guaranty typically requires an individual (often the franchisee or a principal of the franchisee entity) to personally guarantee the financial obligations of the franchise. This could include rent, vendor payments, and other debts.
Understanding the guaranty is crucial because it can expose the guarantor's personal assets to risk if the franchise fails to meet its financial obligations. Franchisees should seek legal counsel to fully understand the implications of the guaranty before signing the Franchise Agreement. This is a standard practice in franchising, as franchisors often require a personal guaranty to ensure financial accountability.