What document, attached as Exhibit E, must be signed by all persons who own any interest in the franchisee entity for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees and understands that any photograph or video of Franchisee or the Franchised Business will become Franchisor's property and will not be returned.
Franchisee agrees and irrevocably authorizes Franchisor to edit, alter, copy, exhibit, publish or distribute any photograph or video of Franchisee for any lawful purpose.
Franchisee waives any rights to royalties or any other compensation related to Franchisor's use of any photograph or video of Franchise or the Franchised Business.
Franchisee agrees to hold harmless and forever discharge Franchisor from all claims, demands, and causes of action which Franchisee may have in connection with this authorization.
VI. BUSINESS DEVELOPMENT AND OPENING; RELOCATION
- 6.1 Ownership of Franchisee. Prior to the opening of the Franchised Business, any individual signing as franchisee shall establish a corporation, limited liability company, general partnership or limited partnership ("Entity"), to own and operate the Franchised Business and shall assign this Agreement to the Entity. Franchisee's owners, shareholders, officers, directors, members, managers and partners (or persons holding comparable positions in non-corporate entities) shall be referred to herein as "Principals". Franchisee must complete and update throughout the Term, as necessary, the "Statement of Ownership" attached as Exhibit D, and:
- (a) All persons who own any interest in the Entity must guaranty Franchisee's performance under this Agreement by signing the "Guaranty and Assumption of Franchisee's Obligations" attached as Exhibit E;
- (b) Franchisee shall provide to Franchisor a resolution signed by all shareholders,
directors, members, managers or partners, as appropriate, designating the principal contact for the Entity and Franchisee. This principal contact must be a controlling shareholder, managing member or general partner. This representative shall have the authority to speak for and bind Franchisee in all matters pertaining to this Agreement, and all matters regarding the Franchised Business;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Exhibit E is the "Guaranty and Assumption of Franchisee's Obligations". Prior to opening a Buona franchised business, the franchisee must establish a corporation, limited liability company, general partnership, or limited partnership to own and operate the franchised business, and shall assign the Franchise Agreement to that entity.
All individuals who own any interest in this entity are required to sign the "Guaranty and Assumption of Franchisee's Obligations," which is attached as Exhibit E. This ensures that all owners of the franchisee entity are personally guaranteeing the franchisee's performance and obligations under the Franchise Agreement.
This requirement is a standard practice in franchising, as it provides Buona with additional security and recourse in case the franchisee entity fails to meet its obligations. By having all owners of the entity sign the guaranty, Buona ensures that there are multiple parties responsible for the franchise's performance, rather than just the business entity itself.