Are all Owners of the Developer required to personally guarantee the Buona Agreement?

According to Buona's 2025 Franchise Disclosure Document, the Development Agreement must be personally guaranteed and the obligations assumed by all of the owners of the Developer. This means that each individual who owns a stake in the entity entering into the Development Agreement with Buona is required to provide a personal guarantee.

In practice, this personal guarantee holds each owner individually liable for the financial and operational obligations outlined in the Development Agreement. If the developer entity fails to meet its obligations, Buona can pursue the personal assets of each owner to recover any losses. This is a significant commitment and a standard practice in franchising, as it ensures that the franchisor has recourse beyond the business entity itself.

Prospective Buona developers should carefully consider the implications of providing a personal guarantee, as it puts their personal assets at risk. It is advisable to seek legal and financial counsel to fully understand the extent of the obligations and potential liabilities before signing the Development Agreement. This requirement underscores the importance Buona places on the financial stability and commitment of its developers.