Franchise Agreements will often have a requirement for a personal guarantee from the franchise operator guaranteeing the franchisee's corporate obligations. If the guarantor is a resident of Alberta, a new legislative amendment which comes into force on April 30, 2015 will change the procedural requirements of obtaining this individual guarantee.
On April 30, 2015, Bill 44: Notaries and Commissioners Act which amends the Alberta Guarantees Acknowledgement Act, will come into force thereby requiring individual guarantors to appear before a lawyer, who is an active member of the Law Society - instead of a notary as previously required - to complete a certificate in respect of the guarantee. This certificate verifies that the guarantor is aware of the contents of the guarantee and understands it. For a copy of the new form that will need to be executed by a lawyer in this regard, please contact a member of our Franchise Group here.
It should be noted that the current requirement for the certificate verifying the individual guarantee is unique to Alberta.
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