What is the deadline for a Buona franchisee to provide written notice of their election to renew their franchise term?
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 to Buona of their intent to renew their franchise agreement no less than six months and no more than twelve months before the current term expires. The initial term of the franchise agreement is ten years, with options to renew for three additional terms of five years each.
This requirement ensures that Buona has adequate time to assess the franchisee's compliance with the franchise agreement and to plan for the future of the franchise location. Failing to provide timely notice could result in the franchisee losing the opportunity to renew and continue operating the Buona restaurant.
In addition to providing timely notice, the franchisee must meet several other conditions to be eligible for renewal. These conditions include executing Buona's current standard franchise agreement (which may contain new or different terms), executing a general release of claims against Buona, not being in default of any agreements, fully performing all obligations under the agreement, satisfying all monetary obligations, and agreeing to remodel the franchised business to meet Buona's current standards. The franchisee must also pay a renewal fee of $7,500 at least 30 days prior to signing the renewal agreement. Meeting all these conditions is crucial for a Buona franchisee seeking to extend their franchise term.