In California, what is the implication if the Buona Franchise Agreement contains a provision that violates California Business and Professions Code Sections 20000 through 20043 regarding franchise transfer?

According to Buona's 2025 Franchise Disclosure Document, California Business and Professions Code Sections 20000 through 20043 protect franchisees regarding termination, transfer, or nonrenewal of a franchise agreement. If any provision in the Buona Franchise Agreement is inconsistent with these sections of the law, the law will override the specific terms of the agreement. This means that the franchisee's rights under California law are protected, even if the franchise agreement attempts to limit or waive those rights.

This protection is further reinforced by an addendum to the Franchise Agreement specifically for California franchisees. This addendum explicitly states that if any part of the agreement conflicts with California Business and Professions Code Sections 20000 through 20043, the law will take precedence. This ensures that Buona franchisees in California receive the full protections afforded to them under state law, particularly concerning franchise termination, transfer, and nonrenewal.

For a prospective Buona franchisee in California, this means that certain standard clauses in the franchise agreement that might be unfavorable are superseded by California law. It is advisable for potential franchisees to consult with a legal professional to fully understand their rights and obligations under both the franchise agreement and California law, especially concerning transfer conditions.