Where will dispute resolution by arbitration for Buona take place?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| r. Non-competition and Non- Solicitation covenants during the term of the franchise | Section 14.2, 14.4 | No involvement in Competitive Business anywhere and no diversion of any business or customers of the Buona Business. No solicitation of our employees or our franchisee’ employees. |
| s. Non-competition and non- solicitation covenants after the franchise is terminated or expires | Section 14.3 – 14.4 | No involvement in Competitive Business for 2 years within 10 miles of the site of any Buona Business, whether or not formerly owned by you, except owning less than 2% of the outstanding shares of a publicly traded security. No solicitation of our employees or our franchisees’ employees for 1 year. |
| t. Modification of agreement | Sections 7.1, | No modifications generally without mutual |
| 23.1, 25.1, 25.8 | consent, but the Manual is subject to change. | |
| t. Integration/merger clause | Section 23.1 | Only the terms of the Franchise Agreement and other related written agreements are binding (subject to state law). However, nothing in the Franchise Agreement or any related agreement is intended to disclaim our representations made in this Franchise Disclosure Document. Any representations or promises outside of the Franchise Disclosure Document and other agreement may not be enforceable. |
| u. Dispute resolution by | Sections 24.1 – | Illinois (subject to state law). |
| arbitration | 24.4 | |
| v. Choice of forum | Sections 24.5 | Illinois (subject to state law). |
| w. Choice of law | Sections 24.5 | Illinois (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 52–60)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, dispute resolution by arbitration will take place in Illinois, although this is subject to state law. This information is found within Section 24.1 – 24.4 of the franchise agreement.
For a prospective franchisee, this means that if a dispute arises with Buona that cannot be resolved through informal means, the franchisee may be required to enter into arbitration proceedings. The location of these proceedings will be in Illinois, which may require the franchisee to travel to Illinois, potentially incurring travel costs, legal fees, and other related expenses.
The FDD also notes that the choice of forum for any legal action will also be Illinois and that Illinois law governs the franchise agreement. It is important to consult with a legal professional to understand the implications of these provisions, especially if the franchisee is located outside of Illinois.