What is the deadline for opening a Buona franchised business after 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 23 — RECEIPTS (FDD pages 78–356)
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 a franchised business at an existing location. This requirement is outlined in Section 6.5 of the franchise agreement. However, Buona may extend this period at its discretion if the delays are due to circumstances outside the franchisee's control or other mutually agreed-upon reasons.
Failure to meet this deadline can result in the termination of the franchise agreement, without Buona offering an opportunity to cure the failure. This underscores the importance of careful planning and efficient execution once a site is approved. The FDD emphasizes that this deadline applies specifically to existing locations, while a longer timeframe is provided for locations requiring ground-up construction.
Prospective Buona franchisees should be aware of this strict timeline and factor it into their business plans. It is crucial to have all necessary resources and arrangements in place to ensure the business can be opened within the stipulated six-month period. Communication with Buona regarding any potential delays is also advisable to explore the possibility of an extension, although such an extension is not guaranteed.
This requirement is fairly typical in the franchise industry, as franchisors want to ensure that franchisees open their businesses promptly to start generating revenue and building the brand's presence. Franchisees should carefully review the franchise agreement and discuss any concerns with Buona before signing.