Does the Buona Development Agreement grant the developer the right to sub-license others to operate a Buona business?

According to Buona's 2025 Franchise Disclosure Document, the Development Agreement does not grant the developer the right to sub-license others to operate a Buona business. The agreement explicitly states that the developer has no right to license others to operate a business or use the Buona system or marks. This restriction is a standard practice in franchising, as the franchisor typically wants to maintain control over who operates under their brand name to ensure quality and consistency.

This provision is important for potential developers to understand, as it clarifies that their role is to develop and operate Buona restaurants themselves, not to act as a sub-franchisor. The Development Agreement focuses on the developer's obligation to open a certain number of locations within a specific timeframe and area. The developer's rights are limited to those expressly granted in the agreement, and sub-licensing is not one of them.

Buona retains the right to grant franchises and/or development rights for The Original Rainbow Cone Restaurants within any Development Area that is specified only for the development of a Buona Restaurant. This clause indicates that while a developer might have certain area rights for Buona restaurants, the franchisor can still introduce another brand they control, The Original Rainbow Cone, into that same area under certain conditions. This highlights the importance of carefully reviewing the Development Agreement to understand the scope and limitations of the developer's rights and the franchisor's retained rights.