What is the deadline for a Buona franchisee to provide written notice of their election to renew the franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall have the option to renew its right to operate the Franchised Business for three (3) additional terms of five (5) years each, provided that Franchisor does not exercise its rights in accordance with Section 2.3 below, if and only if each and every one of the following conditions has been satisfied:
- (a) Franchisee gives Franchisor written notice of its election to renew not less than six (6) months nor more than twelve (12) months prior to the expiration of the Term;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must provide written notice of their election to renew the franchise agreement not less than six months and no more than twelve months before the current term expires. This notification is a prerequisite for potentially renewing the agreement for three additional five-year terms.
Meeting this deadline is crucial, but it is only one of several conditions that must be met to qualify for renewal. Other conditions include executing Buona's current standard franchise agreement (which may have significantly different terms), releasing all claims against Buona, not being in default of any agreements, fully performing all obligations, satisfying all monetary obligations, and agreeing to remodel the franchised business to meet current standards.
If a franchisee fails to meet the notification deadline or any other renewal conditions, they will not have the right to renew the agreement and must comply with the termination provisions outlined in the agreement. Even if Buona allows the franchisee to continue operating after the initial term while a renewal agreement is pending, this continuation is on a month-to-month basis and can be terminated with a 30-day written notice (or a longer period if required by local laws).