What actions can Buona take regarding the Franchise Agreement without affecting the Guarantor's liability?

According to Buona's 2025 Franchise Disclosure Document, the guarantor's liability remains intact even if Buona takes certain actions related to the Franchise Agreement. Specifically, Buona is authorized, without notice or demand to the guarantor, to make or approve changes to the Franchise Agreement, repeatedly compromise, renew, extend, accelerate, or otherwise change the time for payment or other terms of the Franchise Agreement. Buona can also take and hold security for the payment of amounts due under the Franchise Agreement or the Guaranty, and exchange, enforce, waive, and release any such security, with or without the substitution of new collateral. Furthermore, Buona has the authority to determine how, when, and what application of payments and credits shall be made on amounts due under the Franchise Agreement, and to assign or transfer the Guaranty, in whole or in part.

This means that a guarantor's obligations are not lessened even if the terms of the franchise agreement are altered, payment schedules are modified, or security interests are managed or transferred. The guarantor remains responsible for the franchisee's obligations to Buona, regardless of these changes. This clause protects Buona by ensuring that the guaranty remains in effect even if the underlying agreement is modified.

For a prospective Buona franchisee, this highlights the importance of understanding the full scope of the guaranty agreement. Individuals acting as guarantors should be aware that their liability is not diminished by changes to the franchise agreement and should carefully consider the potential financial implications before signing the guaranty. It is also important to note that the guarantor waives certain rights and defenses, such as those related to "one action" or "anti-deficiency" laws, which could prevent the guarantor from contesting actions taken by Buona to recover amounts due.