Does entering into an Area Development Agreement with Buona grant the right to use the Buona trademarks?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Development Agreement
Under the Area Development Agreement, you are not granted the right to use the Marks. All of the rights to use the Marks are derived solely by entering into a Franchise Agreement with us. Under the Area Development Agreement, you will have no right to license others to operate a business using our System or Marks.
Source: Item 13 — TRADEMARKS (FDD pages 48–50)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, entering into an Area Development Agreement does not grant the right to use Buona's trademarks. The FDD clearly states that the right to use the trademarks is only granted upon entering into a Franchise Agreement with Buona.
This means that an Area Developer cannot use Buona's trademarks to operate a business or license others to do so. The Area Development Agreement solely provides the developer with the opportunity to open multiple Buona locations within a specific territory, but the actual right to operate under the Buona brand, including using its trademarks, is contingent on signing a separate Franchise Agreement for each location.
This distinction is crucial for prospective Area Developers to understand. While the Area Development Agreement secures a territory for expansion, it does not confer the rights necessary to operate a Buona business. Those rights are exclusively obtained through the Franchise Agreement, which outlines the terms and conditions for using Buona's trademarks and operating under its brand. Therefore, an Area Developer must transition to a franchisee to fully realize the benefits of the Buona system and brand recognition.