It was inevitable. The franchise sales engines have been spewing speculative claims about what we might call “pandemic opportunities”. The story is that many restaurants (estimates range from 3% to 50%) will close permanently because of the pandemic and the corresponding recession.
If you decide to go into business with a friend or family member, you should think twice and then get your deal documented better than you would need to with a stranger.
Franchisors require virtually every person who buys a franchise to sign a personal guarantee, even if they plan to operate the franchise through a through a corporation or limited liability company. You should think twice (or more) before signing a personal guarantee.
