factual

Does the Buona Area Development Agreement require the Developer to sign leases or purchase agreements?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

  • DEVELOPER INITIALS

EXHIBIT A TO THE AREA DEVELOPMENT AGREEMENT

DESCRIPTION OF DEVELOPMENT AREA

[Insert description]

FRANCHISOR: CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING, LLC An Illinois limited liability Franchisor DEVELOPER: [ENTITY NAME] A Dated: Dated: ADA 2025 - 16 - FRANCHISOR INITIALS______ ______DEVELOPER INITIALS

EXHIBIT B TO THE AREA DEVELOPMENT AGREEMENT

DEVELOPMENT SCHEDULE

Developer is obligated under this Agreement to develop, open and operate a minimum of three (3) Buona restaurants.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, the Area Development Agreement requires the developer to sign leases or purchase agreements. Specifically, the developer must have signed franchise agreements, signed leases or purchase agreements for franchisor-approved sites by the dates outlined in the Development Schedule.

This requirement ensures that the developer is committed to securing locations for the Buona restaurants within the agreed-upon timeframe. It also allows Buona to maintain control over site selection, as the leases or purchase agreements must be for franchisor-approved sites. This protects Buona's brand by ensuring that new locations meet their standards.

The developer must also provide written notice of their intention to begin development of the next Buona Restaurant at least thirty days before executing the Franchise Agreement. They must also submit a description of the proposed site with a letter of intent or other evidence confirming favorable prospects for obtaining the site. Furthermore, the developer is required to execute a lease, in a form approved by Buona, or a purchase agreement for the proposed site.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.