Is the form for the 'Guaranty and Assumption of Franchisee's Obligations' attached to the Buona Franchise Agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY AND ASSUMPTION OF FRANCHISEE'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, and Five Flavors Franchising LLC, an Illinois limited liability company | |
| (collectively "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 ("Franchisee") shall punctually pay and perform in full each and every | |
| undertaking, agreement and covenant set forth in the Franchise Agreement; |
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 51–52)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the 'Guaranty and Assumption of Franchisee's Obligations' is a contract that owners of the Developer must execute. This form is made in consideration of the execution of the Franchise Agreement by Chicago's Original Italian Beef Franchising LLC and Five Flavors Franchising LLC, collectively known as the Franchisor.
The Guaranty ensures that the Franchisee will fulfill all obligations set forth in the Franchise Agreement. The Guarantor(s) unconditionally warrant and guarantee to the Franchisor that the Franchisee will punctually pay and fully perform every undertaking, agreement, and covenant detailed in the Franchise Agreement.
Prospective Buona franchisees should carefully review the Guaranty to understand the full scope of their obligations and liabilities. They should also seek legal counsel to ensure they fully understand the implications of signing such a document.