What other agreement is the Developer signing simultaneously with this agreement related to establishing the first Buona Franchised Restaurant?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ess activities not expressly prohibited by this Agreement.
- 1.4 This Agreement is not a Franchise Agreement, and you shall have no right to use in any manner the System or the Marks by virtue of entering into this Agreement.
- 1.5 Developer shall
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, concurrent with the execution of the Area Development Agreement, the developer must also execute a Franchise Agreement for the first Buona Restaurant to be developed. The developer is also responsible for paying the initial franchise fee of $40,000 due under the Franchise Agreement.
This means that the developer is not only committing to develop multiple Buona restaurants in a specific area but is also immediately entering into a franchise agreement for the first location. This dual commitment ensures that the developer is serious about opening and operating a Buona franchise right away.
For prospective Buona developers, this requirement means being prepared to pay both a development fee for the rights to develop the area and the initial franchise fee for the first restaurant simultaneously. Failing to execute both agreements and pay the fees will likely void the Area Development Agreement.