What agreement does a Developer sign at the time the Area Development Agreement is signed for a Buona Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
We also allow certain franchisees who meet our criteria to become a Developer. A Developer agrees to establish and operate themselves a minimum of 3 Buona Businesses in a specified Development Area over an agreed upon period of time. The Area Development Agreement is attached to this Franchise Disclosure Document as Exhibit C. The Developer will sign a Franchise Agreement for the first Buona Business at the time the Area Development Agreement is signed. For each future franchise to be developed, the Developer will sign the then current form of Franchise Agreement that may have different terms than the Franchise Agreement contained in this Franchise Disclosure Document.
If a Developer intends to develop all or some Dual Brand Businesses, the Developer will sign the Dual Brand Area Development Agreement that is attached to this Franchise Disclosure Document as Exhibit C-1 with us and our affiliate Five Flavors. For each franchise to be developed under the Dual Brand Area Development Agreement, the Developer will sign either a single restaurant Franchise Agreement with us or a Dual Brand Franchise Agreement with us and Five Flavors.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a Developer signs a Franchise Agreement for their first Buona Business when they sign the Area Development Agreement. This agreement commits the Developer to establishing and operating a minimum of three Buona Businesses within a specified Development Area over a defined period.
For each subsequent Buona franchise to be developed under the Area Development Agreement, the Developer will sign the then-current form of the Franchise Agreement. This is significant because the terms of the Franchise Agreement may change over time, potentially differing from the initial Franchise Agreement signed with the Area Development Agreement.
If a Developer intends to develop Dual Brand Businesses (combined Buona and The Original Rainbow Cone restaurants), they will sign a Dual Brand Area Development Agreement with Buona and its affiliate, Five Flavors. For each Dual Brand franchise developed under this agreement, the Developer will sign either a single restaurant Franchise Agreement with Buona or a Dual Brand Franchise Agreement with both Buona and Five Flavors.