What condition must be met to maintain the terms and conditions of the Buona Development Agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The terms and conditions of this Agreement are contingent upon you being in full compliance with the Development Schedule. In addition, you must at all times after the opening of each Buona Restaurant continuously maintain in operation pursuant to each Franchise Agreement at least the number of Buona Restaurants set forth in the Development Schedule, and your Owners must at all times own a majority control over the entity that owns each Buona franchise developed hereunder. You may develop and open any Buona Restaurant earlier than the date set forth in the Development Schedule as long as you do so in compliance with this Agreement and the applicable Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the terms and conditions of the Development Agreement are contingent upon the developer being in full compliance with the Development Schedule. This means the developer must adhere to the timeline and milestones outlined in the Development Schedule for opening new Buona restaurants.
In addition to adhering to the Development Schedule, the developer must continuously maintain in operation at least the number of Buona restaurants set forth in the Development Schedule after each restaurant opens. The owners of the development entity must also maintain majority control over the entity that owns each Buona franchise developed under the agreement. This ensures consistent operation and management of the restaurants according to Buona's standards.
To develop each Buona Restaurant, the developer must provide written notice of their intention to begin development at least 30 days before executing the Franchise Agreement. They must also submit a description of the proposed site with evidence confirming favorable prospects for obtaining the site, execute the current Franchise Agreement, execute a lease or purchase agreement for the proposed site, and meet all requirements for developing and opening the Buona Restaurant. These steps ensure that each new location meets Buona's standards and has a high likelihood of success.