Q: Business Law, Franchise question. Most FDD has a personal guaranty clause. What can I do about it? Can it be limited?
A: Not much. It is an offer. You can accept or provide counter offer. You should be represented by an attorney to know what you actually sign into.
A: This is a good question as an unlimited personal guarantee puts your assets at risk. In my opinion, the Franchise Business should stand alone and generate enough income from which to pay the monetary obligations to the Franchisor. I have no problem with you signing a separate confidentiality and noncompetition agreement consistent with the terms of the Franchise Agreement that other employees have to sign. The same thing goes when you sign a lease. You will want to limit your exposure under the lease guaranty.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
