Who is the Franchisor referred to in the Guaranty and Assumption of Franchisee's Obligations for a Buona franchise?
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 ("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 |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisor in the Guaranty and Assumption of Franchisee's Obligations is Chicago's Original Italian Beef Franchising LLC, an Illinois limited liability company. This entity is explicitly identified as the "Franchisor" within the context of the guaranty agreement. The guaranty is made to induce the Franchisor to execute the Franchise Agreement.
In practical terms, this means that if a prospective Buona franchisee is required to have a guarantor for their obligations, the guarantor is providing that guarantee directly to Chicago's Original Italian Beef Franchising LLC. The guarantor is assuring the franchisor that the franchisee will meet all financial and performance obligations outlined in the Franchise Agreement.
This arrangement is typical in franchising, where franchisors seek to ensure franchisees' compliance with the franchise agreement through various means, including personal guarantees. The guarantor is essentially promising to cover the franchisee's debts and obligations to Buona if the franchisee fails to do so. This protects Buona and provides them with recourse beyond the franchisee's business assets.