When must the Developer commence operations of a Buona restaurant according to Exhibit B?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- DEVELOPER INITIALS
EXHIBIT A TO THE AREA DEVELOPMENT AGREEMENT
DESCRIPTION OF DEVELOPMENT AREA
[Insert description]
FRANCHISOR: CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING, LLC An Illinois limited liability Franchisor DEVELOPER: [ENTITY NAME] A Dated: Dated: ADA 2025 - 16 - FRANCHISOR INITIALS______ ______DEVELOPER INITIALS
EXHIBIT B TO THE AREA DEVELOPMENT AGREEMENT
DEVELOPMENT SCHEDULE
Developer is obligated under this Agreement to develop, open and operate a minimum of three (3) Buona restaurants.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Exhibit B outlines the development schedule that the developer must adhere to. The developer is required to develop, open, and operate a minimum of three Buona restaurants. Exhibit B specifies the last date for the execution of the Franchise Agreement, the last date for the execution of the lease or date for the purchase agreement for a Franchisor-approved site, and the commencement of operations.
The commencement of operations of a Buona restaurant must occur upon the execution of the Area Development Agreement. This means that as soon as the agreement is signed, the developer is expected to begin the process of opening and operating the restaurants as per the agreed-upon schedule.
It is important to note that the developer is obligated to meet the deadlines outlined in Exhibit B. Failure to comply with the development schedule could result in a breach of the Area Development Agreement. However, the developer may develop and open a Buona Restaurant earlier than the date set forth in the Development Schedule as long as they do so in compliance with this Agreement and the applicable Franchise Agreement.