What is the deadline for a Buona franchisee to open the franchised business after written site approval for an existing location?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Franchisee fails to obtain site approval for the Franchised Business within six (6) months of the date of the execution of this Agreement for a location requiring ground up construction and within four (4) months of the date of the execution of this Agreement for an existing location as required by Section 6.2; or Franchisee fails to open the Franchised Business with Franchisor's approval as required in Section 6.5 within twelve (12) months of Franchisor's written approval of the site for the Franchised Business for a ground up construction or within six (6) months of Franchisor's written approval of the site for an existing location.
However, Franchisor may in its sole discretion extend this period for matters not within control of Franchisee or for other mutually agreed upon grounds;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee has six months from the date of Buona's written site approval to open the franchised business if it is an existing location. However, Buona may extend this period at its sole discretion if the delays are due to matters not within the franchisee's control or other mutually agreed-upon reasons.
If the franchisee fails to obtain site approval within the specified timeframes or fails to open the franchised business within the given timeframe after written approval, Buona retains the unilateral right to terminate the franchise agreement. This emphasizes the importance of adhering to the set timelines for site approval and business opening.
This requirement ensures that franchisees promptly move forward with establishing and opening their Buona restaurants once a site is approved. It also protects Buona by allowing them to terminate the agreement if a franchisee is unable to meet these deadlines, ensuring that locations are opened and operational in a timely manner. Prospective franchisees should discuss potential factors that could cause delays with Buona to fully understand the possibility of extensions.