Are the obligations of the Guarantor to the Franchisor direct and primary, regardless of the validity or enforceability of the Franchise Agreement for a Buona franchise?

According to Buona's 2025 Franchise Disclosure Document, the obligations of a guarantor to Buona are direct and primary, irrespective of the validity or enforceability of the Franchise Agreement. This means that the guarantor's responsibility to Buona is an independent obligation. It is separate from the franchisee's obligations. Even if the Franchise Agreement is deemed invalid or unenforceable for some reason, the guarantor's obligations to Buona remain in full effect.

This aspect of the guaranty agreement is significant for potential Buona franchisees because it clarifies the extent of the guarantor's liability. The guarantor cannot claim that their obligations are excused if the Franchise Agreement is challenged or found to be defective. This provides Buona with a higher level of assurance that the obligations under the Franchise Agreement will be met, regardless of any issues that may arise with the agreement itself.

This type of clause is relatively standard in franchise agreements where a guarantor is involved. It protects the franchisor's interests by ensuring that there is a party responsible for the financial and operational obligations of the franchise, even if the franchisee's direct obligations are somehow compromised. Prospective franchisees should carefully review the guaranty agreement and understand the full scope of their obligations and potential liabilities as a guarantor.