What is the consequence if a Buona franchisee transfers the franchise agreement without authorization?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Any attempt to transfer this Agreement in whole or part, or any material portion or property used by Franchisee in connection with this Agreement, whether or not binding on Franchisor, shall be grounds for the termination of this Agreement without the opportunity to cure, unless the transfer is authorized in writing by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee attempts to transfer the franchise agreement without written authorization from Buona, it constitutes grounds for termination of the agreement. Importantly, the franchisee will not have the opportunity to correct or 'cure' this breach. This applies to any attempt to transfer the agreement, whether in whole or in part, or any transfer of property used in connection with the agreement.
This provision underscores Buona's control over who operates its franchises and protects the brand from unauthorized operators. It is a fairly standard clause in franchise agreements, as franchisors need to ensure that any new operator meets their standards and is properly trained.
For a prospective Buona franchisee, this means that any desire or need to transfer the franchise must be communicated to and approved by Buona in writing. Failure to do so can result in the immediate termination of the franchise agreement, representing a significant risk for the franchisee's investment and business operations.