In California, what specific rights do franchisees have concerning nonrenewal of a Buona franchise under California Business and Professions Code Sections 20000 through 20043?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ou are open for business. For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open.
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- Item 6 of the Franchise Disclosur
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 provide specific rights to Buona franchisees regarding the termination, transfer, or nonrenewal of their franchise agreements. The FDD explicitly states that if any provision within the franchise agreement is inconsistent with these California laws, the law will take precedence. This ensures that California franchisees are protected by state law, regardless of what the franchise agreement might state.
To further protect franchisees in California, Buona includes an addendum to the franchise agreement that reinforces these rights. Specifically, the addendum amends sections of the franchise agreement concerning renewal options and conditions, as well as default and termination, by explicitly referencing California Business and Professions Code Sections 20000 through 20043. This reiterates that these sections provide rights to the franchisee concerning termination, transfer, or nonrenewal and that California law will control in cases of inconsistency.
Additionally, the FDD emphasizes that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Buona or its representatives. This provision supersedes any other term in any document related to the franchise, ensuring that franchisees cannot inadvertently waive their rights under California law. For franchisees operating outlets in California, the California Franchise Investment Law and the California Franchise Relations Act will apply, irrespective of any choice of law or dispute resolution venue stated elsewhere in the agreement.