In the event of a transfer of a Buona franchise, what is the franchisee required to do regarding Article XIV covenants?

According to Buona's 2025 Franchise Disclosure Document, a franchisee who is transferring their franchise must agree to remain obligated under the covenants contained in Article XIV. This requirement is a condition for Buona's approval of the transfer.

Article XIV likely contains covenants related to non-competition, confidentiality, or other obligations that Buona deems essential to protect its brand and system. By remaining obligated, the transferring franchisee agrees to continue adhering to these covenants even after the transfer occurs, as if the agreement had been terminated on the date of transfer.

This condition ensures that the transferring franchisee cannot undermine the Buona system by, for example, opening a competing business immediately after selling their franchise. It protects Buona's interests and maintains the integrity of its franchise network. Prospective franchisees should carefully review Article XIV to understand the specific obligations they will be bound to even after transferring their franchise.