Must Buona approve the letter of intent and lease for my approved site before I execute them for my Buona Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Once we have approved a site, you will prepare and submit a letter of intent to the landlord for the site and obtain a proposed lease. We must approve the letter of intent for your lease and the lease for your approved site before you execute them. The factors we consider in approving a lease include but are not limited to whether the terms are commercially reasonable based on the current market conditions, the length of the term, and the rights to cure upon default. In addition, a condition of approval of the lease will be the agreement of the landlord to execute our form of Addendum to Lease and Collateral Assignment of Lease that is attached to the Franchise Agreement as Exhibit B, or alternatively providing similar language in the executed lease in a form approved by us. These requirements apply whether the lessor is an unrelated third party or is an affiliate of yours. If the lease is not approved by us, you must locate another site that meets our approval.
You will provide a copy of the executed lease to us. You will provide to us the names and contact information for your landlord and/or management companies of the approved site of your Buona Business. We reserve the right to contact your landlord and/or management company for the purposes of assessing your performance and customer satisfaction.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–46)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, after Buona approves a site for a franchisee, the franchisee must prepare and submit a letter of intent to the landlord to obtain a proposed lease. Before a Buona franchisee can execute the letter of intent and the lease, Buona must approve both documents.
Buona's approval of the lease will depend on factors such as whether the lease terms are commercially reasonable based on current market conditions, the length of the lease term, and the rights to cure upon default. Additionally, the landlord must agree to execute Buona's form of Addendum to Lease and Collateral Assignment of Lease or provide similar language in the executed lease in a form approved by Buona. These requirements apply whether the lessor is an unrelated third party or an affiliate of the franchisee.
If Buona does not approve the lease, the franchisee must find another site that meets Buona's approval. The franchisee is required to provide Buona with a copy of the executed lease, as well as the names and contact information for the landlord and/or management companies of the approved Buona Business site. Buona retains the right to contact the landlord and/or management company to assess the franchisee's performance and customer satisfaction.