What is the cure period afforded to a Buona franchisee before termination for indictment of a felony?

According to Buona's 2025 Franchise Disclosure Document, if a franchisee or their guarantors are indicted for a felony, a crime involving moral turpitude, or any other crime that Buona believes is reasonably likely to have an adverse effect on the System, the Marks, or the goodwill associated with the System and the Marks, or Buona's interest in the System or the Marks, Buona can terminate the agreement. The agreement does not specify a cure period for such an event. This means that Buona has the right to terminate the franchise agreement immediately upon such an indictment or conviction.

This policy is stricter than some franchise agreements, which may allow a cure period for certain violations. The absence of a cure period in this case means that the franchisee faces immediate termination and loss of their franchise investment upon such an event. This could have significant financial implications for the franchisee, as they would lose the right to operate the Buona restaurant and would likely not receive any compensation for their investment.

Prospective Buona franchisees should be aware of this immediate termination clause and understand the potential risks associated with it. They should carefully consider the implications of such a clause and seek legal counsel to fully understand their rights and obligations under the franchise agreement. It is important to note that this clause applies not only to the franchisee but also to their guarantors, which could include individuals who have provided financial backing for the franchise.