I recently received an inquiry on the blog asking whether or not a spouse should sign a franchise agreement. Circumstances may vary, but in general, I usually recommend that spouses don’t sign the franchise agreement if they aren’t going to be involved in the franchise business. It’s my view there is no reason your family should throw all your eggs in one basket by having both spouses sign a personal guarantee.
If a franchisor tells you it’s required for the spouse to sign, push back. There is no such legal requirement. Plus, most franchise agreements have transfer provisions that allow the franchise to be transferred to the spouse in the event of death or other circumstances.
Other reading: 11 Things Every Franchisee Should Know.
Be sure to consult a franchise and/or business attorney for your specific circumstances.