Does the Buona Development Agreement grant the developer the right to use the Buona System or Marks?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.4 This Agreement is not a Franchise Agreement, and you shall have no right to use in any manner the System or the Marks by virtue of entering into this Agreement.
- 1.5 Developer shall have no right under this Agreement to license others to operate a business or use the System or the Marks.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Development Agreement does not grant the developer the right to use the Buona System or Marks. Specifically, the FDD states that the agreement "is not a Franchise Agreement" and confers no rights to use the System or Marks. Any rights to use the Marks are granted under the individual franchise agreements executed in connection with the Development Agreement.
This means that while a developer commits to opening multiple Buona restaurants within a specific territory and timeframe, the Development Agreement itself only outlines the terms of this development schedule. It does not allow the developer to operate under the Buona brand or utilize its established System. The developer gains these operational rights only upon signing individual Franchise Agreements for each location they plan to open.
This distinction is important for prospective developers to understand. The Development Agreement secures the territory and development timeline, but the actual right to operate a Buona restaurant, use its branding, and follow its operational system comes with the separate Franchise Agreement for each location. Therefore, a developer must fulfill the obligations of both the Development Agreement and each individual Franchise Agreement to successfully establish and run Buona restaurants within their designated area.