As a Buona developer, are there any specific sections of the Development Agreement that I must comply with?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) You shall comply with all terms and conditions set forth in this Agreement.
(b) You shall comply with all of the terms and conditions of each Franchise Agreement including, without limitation, the operating requirements specified in each Franchise Agreement; however, we shall determine what, if any, initial training at our headquarters will be required of your Owners and managers in connection with the second or any subsequent Franchise Agreements.
(c) You shall comply with the non-disclosure and non-competition obligations under Section 6 of this Agreement.
3.1 The terms and conditions of this Agreement are contingent upon you being in full compliance with the Development Schedule. In addition, you must at all times after the opening of each Buona Restaurant continuously maintain in operation pursuant to each Franchise Agreement at least the number of Buona Restaurants set forth in the Development Schedule, and your Owners must at all times own a majority control over the entity that owns each Buona franchise developed hereunder. You may develop and open any Buona Restaurant earlier than the date set forth in the Development Schedule as long as you do so in compliance with this Agreement and the applicable Franchise Agreement.
- 3.2 You must develop each Buona Restaurant in the following manner:
(a) By giving us written notice of your intention to begin development of the next Buona Restaurant at least thirty (30) days before the execution of the Franchise Agreement for the applicable restaurant;
(b) By submitting to us a description of the proposed site, together with a letter of intent in a form approved by us or other evidence satisfactory to us which confirms your favorable prospects for obtaining the proposed site;
(c) By executing the then-current form of the Franchise Agreement for the applicable restaurant at the approved site and complying with its terms. We acknowledge that the franchisee for each Franchise Agreement may be a separate entity owned by your Owners.
(d) By executing a lease, in a form approved by us, or purchase agreement for the proposed site; and
- (e) By meeting all of the requirements for developing and opening the Buona Restaurant
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, as a developer, you must comply with several sections of the Development Agreement. These include general compliance, adherence to Franchise Agreements, non-disclosure and non-competition obligations, and the Development Schedule.
Specifically, you must adhere to all terms and conditions outlined in the Development Agreement and each individual Franchise Agreement. This includes the operating requirements specified in each Franchise Agreement. You are also obligated to maintain continuous operation of at least the number of Buona Restaurants set forth in the Development Schedule after each restaurant opens, and ensure your Owners maintain majority control over the entity owning each Buona franchise.
Furthermore, you must comply with non-disclosure and non-competition obligations as detailed in Section 6 of the agreement, which covers proprietary marks and confidential information. This restricts the use of Buona's marks and protects their confidential information. You must also adhere to the Development Schedule, giving written notice at least 30 days before executing a Franchise Agreement, submitting site descriptions, executing the Franchise Agreement and a lease or purchase agreement, and meeting all requirements for developing and opening each Buona Restaurant.
Failure to comply with these terms can result in default under the Development Agreement, potentially impacting your rights to develop Buona Restaurants. It is important to carefully review and understand all sections of the Development Agreement to ensure full compliance and maintain a successful partnership with Buona.