What happens if a waiver in the Buona franchise agreement's Guaranty is determined to be contrary to applicable law or public policy?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Guarantor's Understanding with Respect to Waivers. Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor's full knowledge of the significance and consequences thereof, and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy, such waiver shall be effective only to the extent permitted by law.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Guarantor in the franchise agreement warrants that all waivers are made with full understanding and are reasonable, not conflicting with public policy or law. However, if any waiver is found to be contrary to applicable law or public policy, it will remain effective only to the extent permitted by law.
This means that Buona aims to enforce the waivers as much as legally possible. A prospective franchisee acting as a guarantor should understand the waivers they are agreeing to and how they might be affected if those waivers are challenged.
It is important to note that the franchisor seeks to maintain the effectiveness of waivers to the greatest extent allowed by law, which could still have significant implications for the guarantor. A potential franchisee should seek legal counsel to fully understand the implications of these waivers and the extent to which they may be enforceable.