Who is required to personally guarantee the Buona Developer Agreement?

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

In practice, a personal guarantee means that if the developer entity fails to meet its financial or other obligations under the Developer Agreement, Buona can seek recourse directly from the personal assets of the owners who provided the guarantee. This is a significant commitment, as it puts the personal wealth of the owners at risk.

Requiring personal guarantees is a common practice in franchising, especially for new or smaller development entities. It provides the franchisor with an added layer of security and ensures that the owners are personally invested in the success of the development venture. Prospective Buona developers should carefully consider the implications of providing a personal guarantee and ensure they fully understand the risks involved.