In California, what is the implication if the Buona Franchise Agreement contains a provision that is inconsistent with California Business and Professions Code Sections 20000 through 20043?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or nonrenewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, California Business and Professions Code Sections 20000 through 20043 protect franchisees regarding franchise termination, transfer, or nonrenewal. If any part of the Buona Franchise Agreement clashes with these legal protections, the law will take precedence. This means that even if the agreement states something different, California law will govern the franchisee's rights in these specific areas.
This protection is reinforced by an addendum specifically for California franchisees. This addendum amends sections of the standard franchise agreement related to renewal options, termination, and default. The addendum explicitly states that the California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or nonrenewal of a franchise, and if the franchise agreement contains a provision that is inconsistent with the law, the law will control.
For a prospective Buona franchisee in California, this is a significant safeguard. It ensures that certain fundamental rights related to the franchise relationship cannot be overridden by the franchise agreement. It is advisable for potential franchisees to consult with a legal professional to fully understand these protections and how they apply to the specifics of the Buona Franchise Agreement.