A guaranty agreement is a legal document signed by a franchisee or another party (often a business partner or investor) to personally guarantee the financial obligations of the franchise. This means that if the franchise entity fails to meet its contractual duties, the individual guarantor can be held responsible. Guaranty agreements are commonly required by franchisors and landlords, especially when the franchisee is operating under an LLC or corporation. Reviewing and understanding this agreement is important, as it carries personal financial risk.
Guaranty Agreement
This term
A guaranty agreement is a legal commitment by an individual to be personally liable for a franchise’s obligations.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
