According to Buona's 2025 Franchise Disclosure Document, the obligations of the guarantors under Exhibit C, the Guaranty and Assumption of Developer's Obligations, are indeed joint and several. This means that each guarantor is individually liable for the full amount of the developer's obligations to Buona, as outlined in the franchise agreement.

This "joint and several" liability has significant implications for prospective Buona franchisees. If there are multiple guarantors, Buona can pursue any one or all of them for the full amount owed, regardless of their individual contributions to the business. This provides Buona with a greater degree of financial security, as they are not limited to pursuing only the primary debtor or dividing the debt proportionally among the guarantors.

For potential guarantors, this clause represents a substantial risk. They are essentially vouching for the entire financial commitment of the developer, and their personal assets could be at risk if the developer defaults. It is crucial for anyone considering acting as a guarantor to fully understand the terms of the franchise agreement and the potential financial exposure they are undertaking. They should also carefully assess the financial stability and business acumen of the developer before agreeing to provide a guarantee.

This type of guarantee is a fairly standard practice in franchising, particularly when the franchisee is a corporate entity or has limited operating history. Franchisors like Buona use guarantees to ensure that there are individuals with personal assets at stake, which can provide an added incentive for the franchisee to operate the business successfully and meet their financial obligations.