When does the Development Agreement for Buona expire, according to Section 4.1?

According to Buona's 2025 Franchise Disclosure Document, Section 4.1 of the Development Agreement specifies the term of the agreement. Unless terminated earlier according to its terms, the Development Agreement expires on the date the franchisee signs a Franchise Agreement for the last franchise to be developed under the Development Agreement. The expiration of the Development Agreement is not related to or affected by the term of any individual franchise agreement, lease, or other agreement related to any Buona restaurant. The Development Agreement does not offer any right to renewal. Upon the Development Agreement's expiration, all rights granted to the developer in the Development Area also expire.

This means that a developer's rights to develop franchises in a specific area are tied to the Development Agreement and the schedule outlined within it. Once the developer fulfills the development schedule and signs the franchise agreement for the final location, the Development Agreement concludes. This also ends the developer's exclusive rights to that Development Area.

It is important for potential Buona developers to understand the implications of this agreement structure. The developer needs to be aware of the timeline for development and ensure they can meet the obligations to avoid losing their rights to the Development Area. The lack of a renewal option also means that developers need to consider their long-term strategy and potential for future expansion within the area before the agreement expires.