Can the deadline to open a Buona franchise be extended, and if so, under what circumstances?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
6.5 Franchisor Consent to Open. Franchisee shall not commence operation of the Franchised Business until: (1) the Franchisee entity has been established in accordance with Section 6.1 herein; (2) the premises of the Franchised Business has been developed in accordance with Section 6.2 herein; (3) Franchisee's Operating Owner and required managers have successfully completed the initial training program, Franchisee has hired the necessary staff of employees, and Franchisee has initiated a training program for its employees; (4) Franchisee has obtained all required certifications and license for operating the Franchised Business; (5) Franchisee has furnished Franchisor with copies of all insurance policies required by Article XII of this Agreement, and (6) Franchisee requests and obtains Franchisor's written consent to open for business. Franchisee must have met the foregoing requirements and opened the Franchised Business within fifteen (15) months of Franchisor's written approval of the site for the Franchised Business. Franchisor has the unilateral right (but not the obligation) to terminate the Agreement upon delivery of notice to Franchisee if it fails to open the Franchised Business with Franchisor's approval within the applicable time periods above. If extenuating circumstances beyond Franchisee's control delay the opening of the Franchised Business and Franchisee has been making reasonable efforts to open the Franchised Business, Franchisor may (in its sole discretion) agree to extend the date for opening for an additional reasonable amount of time determined by Franchisor based on the circumstances.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the standard timeframe for opening a franchise is within fifteen months of the franchisor's written site approval. However, under certain conditions, this deadline can be extended. Specifically, if extenuating circumstances beyond the franchisee's control cause delays, and the franchisee demonstrates reasonable efforts to open the business, Buona may, at its sole discretion, agree to extend the opening date. The length of this extension is determined by Buona based on the specific circumstances.
This discretionary extension offers some flexibility for franchisees facing unforeseen challenges such as permitting delays, construction issues, or natural disasters. However, it's important to note that Buona retains the sole right to decide whether or not to grant an extension. A franchisee cannot demand an extension, even if they have a legitimate reason for the delay.
Prospective Buona franchisees should carefully consider the potential risks of delays and the fact that an extension is not guaranteed. It would be prudent to discuss potential scenarios that could lead to delays with Buona during the due diligence process and to understand their typical approach to such situations. Franchisees should also maintain open communication with Buona throughout the development process to ensure they are aware of any potential issues and to demonstrate their ongoing commitment to opening the franchise.