What conditions must a Buona franchisee meet to be approved for relocation or reconstruction after premises damage or destruction?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Compliance with the foregoing shall be a condition subsequent to Franchisor's approval of any relocation request by Franchisee, and in the event complete de-identification of the former Franchised Business premises is not properly and completely undertaken, Franchisor may then revoke its permission for relocation and declare a default under this Agreement.
- (d) In the event Franchisee loses possession of the Franchised Business for whatever reason prior to the expiration of the term of this Agreement, Franchisee is required to diligently search for a new location and open and operate the Franchised Business as promptly as commercially practicable.
In the event Franchisee fails to diligently pursue a new location and open a new Franchised Business, Franchisee shall be liable to Franchisor for Liquidated Damages as provided herein.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee loses possession of their franchised business location for any reason before the franchise agreement's expiration, they are required to diligently seek a new location and reopen the Buona restaurant as quickly as commercially possible. Failure to do so may result in the franchisee being liable to Buona for liquidated damages.
Additionally, compliance with de-identification of the former franchised business premises is a condition for Buona's approval of any relocation request. If the former premises are not properly de-identified, Buona can revoke its permission for relocation and declare a default under the Franchise Agreement.
While the FDD outlines the franchisee's responsibility to find a new location and the consequences of not doing so, it does not explicitly detail the specific conditions for approval of the new site. The franchisee should seek clarification from Buona regarding the specific criteria and procedures for site approval in the event of relocation or reconstruction.