What is the cure period allowed for a Buona franchisee to rectify a breach of the franchise agreement related to maintaining and operating the franchised business in compliance with the agreement, system, and manual?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
isee or to enter into any Arrearage Agreement.
- 16.7 Statutory Cure Period. If a default is curable under this Agreement, and the applicable law in the state in which the Franchised Business is located requires a longer cure period than that
specified in this Agreement, the longer period will apply.
- 16.8 Right to Operate Upon Default**.** In addition to Franchisor' right to terminate this Agreement and not in lieu of such right or any other rights, in the event that Franchisee has not cured a default under this Agreement within fourteen (14) days after receipt of a written notice of default, Franchisor may, at its option, enter upon the Premises and exercise complete authority with respect to the operation of the Franchised Business until such time as Franchisor determines that the default has been cured and that there is compliance with the requirements of this Agreement. Franchisee acknowledges and agrees that Franchisor's agent or other representative designated by Franchisor may take over, control and operate the Franchised Business, that Franchisee shall pay Franchisor the then-current published fee for such management service, plus all travel expenses, room and board and other expenses reasonably incurred by such agent or representative so long as it shall be required to enforce compliance with this Agreement. Franchisee further acknowledges that if Franchisor temporarily operates the Franchised Business on Franchisee's behalf under this Paragraph 16.8, Franchisee will indemnify and hold harmless Franchisor and Franchisor's agent or representative respecting any and all claims arising out of Franchisor's operation of the Franchised Business under this Paragraph 16.8. Nothing herein shall require Franchisor to operate the Franchised Business when Franchisee is in default.
- 16.9 Monetary Fees for Non-Compliance. In addition to any and all other remedies available to Franchisor under this Agreement or under the law upon a default by Franchisee, Franchisor may impose on Franchisee monetary non-compliance fees for the defaults described in this Section 16.9:
- a. Failure to Report Gross Revenues.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee typically has fourteen (14) days to cure a default after receiving written notice. This includes defaults related to maintaining and operating the franchised business in compliance with the franchise agreement, the Buona system, and the operations manual. However, this cure period may be longer if the applicable law in the state where the franchised business is located requires it.
If the franchisee fails to cure the default within the specified period, Buona has the option to enter the premises and take control of the business operations. This control will continue until Buona determines that the default has been resolved and that the franchisee is in compliance with the agreement's requirements. The franchisee is responsible for covering the costs associated with this management service, including fees, travel expenses, room and board, and any other reasonable expenses incurred by Buona's agent or representative.
It's important to note that Buona is not obligated to operate the franchised business on behalf of the franchisee, even if the franchisee is in default. Additionally, Buona may impose monetary non-compliance fees for certain defaults, in addition to any other remedies available under the agreement or the law. This could create additional financial burdens for the franchisee during the cure period.