Why are there 3 parties to the franchise agreement? Who is the guarantor?
The agreement is between abacus Franchising Company Limited (the franchisor) and the limited company incorporated for the franchisee (e.g. abacus 123 Limited). As a limited company is a separate legal entity the franchisee is actually the limited company (in this example abacus 123 limited). Because of this we require the person who is purchasing the franchise to sign the franchise agreement as the guarantor. By doing this it ties in the three parties to the franchise agreement; you, the limited company we set up for you, and us.
