Is Buona authorized to execute and file financing statements in the name of the Guarantor?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantor agrees, and Franchisor is hereby authorized, in the name of Guarantor and from time to time, to execute and file financing statements and continuation statements and to execute such other documents and to take such other actions as Franchisor deems reasonably necessary or appropriate under applicable law to perfect, preserve and enforce its rights under this Guaranty.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Guarantor agrees that Buona is authorized to execute and file financing statements and continuation statements in the name of the Guarantor. Buona can also execute other documents and take actions it deems reasonably necessary to protect its rights under the Guaranty.
This means that as part of the franchise agreement, the person or entity guaranteeing the franchisee's obligations (the Guarantor) gives Buona the power to act on their behalf to secure Buona's financial interests. This is a fairly standard practice in franchising, as it allows the franchisor to efficiently manage and protect its investments in the franchise system.
For a prospective Buona franchisee, this clause underscores the importance of understanding the obligations of a Guarantor. If someone is acting as a Guarantor for the franchisee, they should be aware that Buona has the authority to take actions, including filing financial statements, in their name to secure the obligations under the franchise agreement. The Guarantor should seek legal counsel to fully understand the implications of this authorization.