What is the name of the company requiring 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, 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 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Guaranty and Assumption of Franchisee's Obligations is required by Chicago's Original Italian Beef Franchising LLC, an Illinois limited liability company, which is identified as the Franchisor. This agreement ensures that the franchisee meets all obligations outlined in the Franchise Agreement.
The Guaranty is made as of a specific date in consideration of the execution of the Franchise Agreement. The guarantor(s) agree to ensure that the franchisee punctually pays and performs all duties and agreements detailed in the Franchise Agreement. This protects Buona by providing a guarantee that the franchisee will adhere to the contractual obligations.
This requirement is a standard practice in franchising, where franchisors seek assurance that franchisees will fulfill their financial and operational responsibilities. The guarantor's obligations are independent of the franchisee's, meaning the guarantor is directly and primarily liable, regardless of the validity or enforceability of the Franchise Agreement. This Guaranty remains in effect until all obligations are fully performed, giving Buona a long-term security measure.