Who bears the expense of relocating a Buona Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Any such relocation shall be at Franchisee's sole expense, and shall not be undertaken without Franchisor's prior written consent.
Franchisee shall pay to Franchisor a relocation fee in the amount of fifty percent (50%) of the then-current Initial Franchise Fee to cover Franchisor's services and associated costs in connection with such relocation, including those related to (i) reviewing and approving the new location and the construction drawings for the Franchised Business at its new location and (ii) providing additional on-site training and assistance.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee is responsible for all expenses associated with relocating their franchise. Buona must grant permission for the relocation, especially if the franchisee's lease terminates without fault, expires without renewal possibilities, or if there's a detrimental change in the location's business potential.
Before opening the relocated Buona restaurant, a representative from Buona must be present, unless a written waiver is both requested by the franchisee and approved by Buona. Regardless, Buona's written authorization of the specific opening date is required. The parties will then enter into an agreement specifying the new location and the deadline for opening, after which royalty and marketing fund contributions resume, based on the average weekly gross sales from the year before closing the original location.
In addition to bearing the direct costs, the franchisee must pay Buona a relocation fee equal to 50% of the then-current initial franchise fee. This fee covers Buona's services and costs related to approving the new location, reviewing construction drawings, and providing additional on-site training and assistance. The franchisee is also responsible for removing all signs and materials displaying Buona's trademarks from the former location and modifying the premises to clearly distinguish it from its former appearance and other Buona locations to avoid public confusion, all at the franchisee's expense.