For the Buona franchise, are all Principals jointly and severally liable for the performance of the Franchisee?

According to Buona's 2025 Franchise Disclosure Document, if two or more persons or entities sign the Franchise Agreement, each is jointly and severally liable. This means that all Principals (individuals with significant ownership or control) are jointly and severally liable for the Franchisee's performance under the agreement.

In practical terms, this clause means that Buona can pursue any or all of the Principals for the full amount of any debt or obligation the Franchisee incurs. If one Principal is unable to pay, Buona can seek the entire amount from the other Principals. This applies to financial obligations, adherence to brand standards, and any other requirements outlined in the franchise agreement.

This is a standard practice in franchising, as it provides the franchisor with added security and recourse in case of franchisee default or non-compliance. Prospective Buona franchisees should carefully consider the implications of joint and several liability, especially if they are entering into the agreement with partners or other investors. It is advisable to consult with legal and financial professionals to fully understand the risks and obligations involved.