In California, what specific rights do franchisees have concerning termination of a Buona franchise under California Business and Professions Code Sections 20000 through 20043?

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 states that if any provision within the franchise agreement is inconsistent with these California laws, the law will take precedence.

Specifically, the addendum to the Buona Franchise Agreement for California franchisees highlights the applicability of these sections. It amends sections of the standard agreement concerning renewal options, conditions, and default/termination to ensure compliance with California law. This means that certain clauses in Buona's standard franchise agreement, such as those allowing termination upon bankruptcy, may not be enforceable in California due to federal bankruptcy law. Similarly, post-termination covenants not to compete are addressed, noting that under California Business and Professions Code Section 16600, any contract restraining a former franchisee from engaging in a lawful trade or business is void to that extent.

Furthermore, the FDD clarifies that for Buona outlets operating in California, the California Franchise Investment Law and the California Franchise Relations Act will apply, regardless of any conflicting choice of law or dispute resolution venue specified elsewhere in the agreement. This ensures that California franchisees are protected by California law, superseding any contradictory terms in the franchise agreement or related documents. The document also states that no statement signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by the franchisor.