Who are the parties that the Guaranty and Assumption of Franchisee's Obligations is made in consideration of for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| poses only and except as specified or obligation of any kind whatsoever arising from or in unless Assignee shall take possession of the premises terms hereof and shall assume the obligations of Assignor |
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FIVE FLAVORS FRANCHISING, LLC
By: Title:
EXHIBIT E
GUARANTY AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS
| 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. |
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 made in consideration of the execution of the Franchise Agreement by Chicago's Original Italian Beef Franchising LLC, an Illinois limited liability company, which is referred to as "Franchisor".
In this agreement, the guarantor(s) agree to warrant and guarantee to the Franchisor that the Franchisee will punctually pay and perform all obligations and covenants outlined in the Franchise Agreement. This ensures that Buona, as the Franchisor, has a guarantee that the financial and operational responsibilities of the franchisee will be met.
This guaranty is made to induce Buona to enter into the Franchise Agreement. The guarantor(s) agree to be jointly and severally, personally and unconditionally bound by the terms. This arrangement provides Buona with added security, knowing that there are individuals personally invested in the franchisee's success and compliance with the franchise agreement.