What actions by a Buona developer or its affiliates related to assault or abuse can lead to default?

According to Buona's 2025 Franchise Disclosure Document, a developer can be in default of their agreement if they, or any of their shareholders, members, managers, partners, officers, or directors, verbally or physically assault or abuse any officer, director, member, manager, or employee of Buona or its affiliates, or any Buona franchisee or employees of franchisees. However, this only applies after the developer has received a verbal or written warning from Buona regarding this type of conduct.

This clause in the Development Agreement is designed to protect Buona's employees, franchisees, and their staff from abusive behavior by the developer or those affiliated with the developer. The requirement of a prior warning suggests that Buona will provide an opportunity for the developer to correct their behavior before declaring a default.

If a developer defaults on the agreement due to assault or abuse, Buona has several options. They can terminate the agreement immediately by providing written notice, reduce the number of Buona restaurants the developer is allowed to open and reduce the development territory, or exercise any other legal rights and remedies available to them.

This type of clause is not uncommon in franchise agreements, as franchisors want to protect their brand and the well-being of their network. It is important for prospective Buona developers to understand this provision and ensure that they and their associated parties conduct themselves professionally and respectfully in their interactions with Buona personnel and franchisees.