What is the deadline for the executor, administrator, or personal representative to transfer the interest of a deceased or incapacitated person in a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or mental or physical incapacity of any person with an interest in this Agreement as determined by a physician, the Franchised Business or Franchisee, the executor, administrator, or personal representative of such person shall transfer his interest to a third party approved by Franchisor within twelve (12) months after such death or mental incapacity.
Such transfer, including but not limited to transfer by devise or inheritance, shall be subject to the same conditions as any inter vivos transfer.
However, in the case of transfer by devise or inheritance, if the heirs or beneficiaries of any such person are unable to meet the conditions in this Article XV, the personal representative of the deceased Franchisee shall have a reasonable time, but in no event more than twelve (12) months from Franchisee's death, to sell or transfer the deceased's interest in this Agreement and the Franchised Business, which sale or assignment shall be subject to all the terms and conditions for assignments and transfers contained in this Agreement.
If the interest is not sold or assigned within the twelve (12) month period, Franchisor may terminate this Agreement.
Upon request by Franchisee's executor, administrator, or personal representatives, Franchisor, in its sole discretion, may agree to enter upon the Premises and exercise complete authority with respect to the operation of the Franchised Business until such time as Franchisee's executor, administrator or personal representative transfers Franchisee's interest in the Franchised Business as provided herein. 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 Franchisor is operating the Franchised Business. Franchisee further acknowledges that if Franchisee temporarily operates the Franchised Business on Franchisee's behalf under this
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, in the event of the death or mental or physical incapacity of a person with interest in the franchise, the executor, administrator, or personal representative has a deadline to transfer the interest to a third party approved by Buona. This transfer must occur within twelve months of the death or mental incapacity.
This transfer is subject to the same conditions as any transfer made during the franchisee's lifetime. If the heirs or beneficiaries cannot meet these conditions, the personal representative has up to 12 months from the franchisee's death to sell or transfer the deceased's interest, subject to the standard terms and conditions for assignments and transfers outlined in the agreement.
If the interest is not sold or assigned within this 12-month timeframe, Buona has the right to terminate the franchise agreement. However, Buona may, at its discretion, step in to operate the franchised business until the transfer occurs, charging a management fee plus expenses for this service. This clause ensures a smooth transition of ownership and continued operation of the Buona franchise in unforeseen circumstances.