What is the document called that outlines the Guaranty and Assumption of Developer's Obligations for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
Owners of the Developer, and all such Owners must execute the Guaranty and Assumption of Obligations which is attached hereto as Exhibit C concurrently with the execution of this Agreement by Developer.
| THIS GUARANTY AND ASSUMPTION OF DEVELOPER'S OBLIGATIONS ("Guaranty") is made as of, 20, in consideration of, and as an inducement to, the execution of the Franchise Agreement by Chicago's Original Italian Beef Franchising LLC, an Illinois limited liability company ("Franchisor"). In consideration thereof, each of the undersigned hereby jointly and severally, personally and unconditionally agrees as follows: |
|---|
| 1. |
| Guaranty. |
| Guarantor(s) hereby unconditionally and absolutely warrants and |
| guarantees to Franchisor that ("Developer") shall punctually pay and perform in full |
| each and every undertaking, agreement and covenant set forth in the Franchise Agreement; |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the document outlining the Guaranty and Assumption of Developer's Obligations is called the "Guaranty and Assumption of Developer's Obligations". This document, also referred to as the "Guaranty", is executed by the owners of the developer and is attached as Exhibit C to the Area Development Agreement.
The Guaranty ensures that the owners of the developer personally guarantee the obligations of the developer under the Franchise Agreement. This means that if the developer fails to meet its obligations, the franchisor, Chicago's Original Italian Beef Franchising LLC, can seek recourse directly from the owners.
The Guaranty is made in consideration of, and as an inducement to, the execution of the Franchise Agreement by Buona. The guarantor(s) unconditionally warrant and guarantee that the Developer will punctually pay and perform in full each and every undertaking, agreement, and covenant set forth in the Franchise Agreement. This protects Buona by ensuring that there are individuals personally liable for the developer's performance, adding a layer of security for the franchisor.