In the event of a default under the Buona Franchise Agreement, what is the Guarantor obligated to do?

According to Buona's 2025 Franchise Disclosure Document, if a default occurs under the Franchise Agreement, the Guarantor is obligated to diligently proceed to cure such default at the Guarantor's sole cost and expense. This obligation is outlined in the Guaranty, which is an original and independent obligation of the Guarantor, separate from the franchisee's obligations. The Guarantor's obligations are direct and primary, irrespective of the validity or enforceability of the Franchise Agreement.

Buona may also choose to perform any work related to the franchise business on behalf of the guarantor and pay any costs incurred. Upon demand, the guarantor must promptly pay Buona all sums expended, along with interest at a rate of the lesser of 1.5% per month or the highest rate allowable by law. Buona can also cure any defaults, including paying unpaid bills and liens, with the guarantor responsible for reimbursing these costs plus interest.

Furthermore, Buona can require the guarantor to specifically perform their obligations under the Guaranty through legal action and collect compensation for any losses or expenses incurred due to the guarantor's failure to perform, again with interest at the specified rate. The Guarantor also agrees that any amounts owed to Buona by the franchisee will take precedence over any claims the Guarantor may have against the franchisee, even in cases of insolvency. This ensures Buona's financial interests are protected in the event of a default.