In California, is Buona required to provide a disclosure document before soliciting a proposed material modification of an existing franchise?

According to Buona's 2025 Franchise Disclosure Document, if a franchisee is in California, Buona is required to provide a disclosure document before soliciting a proposed material modification of an existing franchise. Specifically, Section 31125 of the Franchise Investment Law mandates that Buona provide a disclosure document containing information required by the Commissioner before soliciting any proposed material changes to an existing franchise agreement.

This requirement ensures that franchisees in California are fully informed before agreeing to any significant changes to their franchise terms. The disclosure document must be presented to the franchisee before Buona can solicit any agreement to the proposed modification. This gives the franchisee time to review the proposed changes and seek legal or financial advice if needed.

This provision is specific to California due to its franchise investment laws. Other states may have different regulations regarding franchise modifications. Therefore, franchisees should be aware of the specific laws in their state and consult with an attorney to ensure they understand their rights and obligations.