Can Buona designate a geographic area for catering services that differs from the Buona Protected Area?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall offer and sell the following services in accordance with Franchisor's current standards, specifications and procedures as set forth in the Manuals or otherwise in writing.
- (a) Catering Services.
Franchisee shall offer catering services to customers of the Franchised Business.
In providing catering services, Franchisee shall (i) comply with all applicable health, sanitation, food handling, and food transportation requirements in connection with offering catering services, and (ii) shall purchase and maintain such vehicles, equipment and supplies necessary to offer catering services in compliance with Franchisor's standards, specifications and procedures.
Franchisee shall restrict such activities to the geographic area that Franchisor designates, which geographic area may differ from the Buona Protected Area and may be adjusted by Franchisor from time to time in its discretion.
Franchisor shall have the right to revoke Franchisee's right to offer and sell catering services if Franchisor determines in its sole discretion that Franchisee is not maintaining Franchisor's standards, specifications and procedures for catering or not complying with all applicable health, sanitation, food handling, and food transportation requirements, or if Franchisor determines in its sole discretion that offering such additional services is having an adverse impact on the quality of the operation of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona franchisees are required to offer catering services. Buona retains the right to designate a specific geographic area for these catering services, and this designated area may be different from the franchisee's Buona Protected Area. Moreover, Buona can adjust this catering service area at its discretion.
This means that while a franchisee has a protected area for their restaurant, the area in which they can offer catering might be smaller, larger, or simply different. This allows Buona to manage catering services strategically, potentially optimizing coverage and service quality across different regions.
However, Buona also has the right to revoke a franchisee's ability to offer catering services if the franchisee fails to maintain Buona's standards for catering, does not comply with health and safety requirements, or if the offering of catering services negatively impacts the quality of the overall franchise operation. This provision underscores the importance of adhering to Buona's standards and maintaining service quality to continue offering catering services.