For each additional Buona Restaurant, what agreement must be executed?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
eement and is non-refundable, notwithstanding any provision to the contrary contained in any Franchise Agreement. However, we will credit Sixteen Thousand Dollars ($16,000.00) of the Development Fee against the Initial Franchise Fee for each additional Franchise Agreement for a Buona Restaurant executed pursuant to, and in accordance with, this Development Agreement.
| Pursuant to the above paragraph and the Development Schedule, the Development Fee under this Agreement is Dollars ($). |
|---|
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a separate Franchise Agreement must be executed for each additional Buona Restaurant. Upon the execution of each Franchise Agreement, the terms and conditions of that Franchise Agreement will govern the establishment and operation of the restaurant. This means that each location operates under its own specific agreement, ensuring clarity and legal separation between each Buona establishment and the overarching development agreement.
Before executing the Franchise Agreement for each additional restaurant, the developer must provide written notice of their intention to begin development at least 30 days in advance. They also need to submit a description of the proposed site, along with a letter of intent or other satisfactory evidence confirming favorable prospects for obtaining the site. Additionally, the developer needs to execute a lease in a form approved by Buona, or a purchase agreement for the proposed site, and meet all requirements for developing and opening the restaurant.
Furthermore, the initial franchise fee for each additional Franchise Agreement will be $32,000, provided that the developer is in compliance with the Development Schedule at the time of signing. If the developer is not in compliance, they will be required to pay the then-current initial franchise fee being charged to new franchisees, if it is greater than $32,000. This fee structure incentivizes adherence to the development timeline outlined in the initial agreement. Buona also requires that the franchisee for each Franchise Agreement may be a separate entity owned by the Owners.