Are the Guarantor's obligations to the Franchisor under the Guaranty direct for a Buona franchise?

According to Buona's 2025 Franchise Disclosure Document, the obligations of the Guarantor to Buona under the Guaranty are direct and primary. This means that the Guarantor's obligations are not secondary to the Franchisee's obligations. The Guaranty is an original and independent obligation of the Guarantor, separate from the Franchisee's obligations under the Franchise Agreement.

This arrangement benefits Buona, as they can seek recourse directly from the Guarantor without needing to first pursue action against the Franchisee. This direct obligation remains in effect regardless of the validity or enforceability of the Franchise Agreement itself. The Guaranty is specifically for Buona's benefit and not for any third party.

For a prospective Buona franchisee, this implies that if a guaranty is required, the guarantor's financial strength and willingness to assume direct responsibility are critical. The guarantor should fully understand the scope of the obligations and potential liabilities under the Guaranty, as Buona can pursue the guarantor directly and immediately in case of any default by the franchisee.