What factors does Buona consider when approving a site for my Buona Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The factors we consider in approving sites include but are not limited to location, size, suitability, layout, access and visibility of the proposed location, proximity to other businesses, location and nature of any competitors, population density and demographics, household income, vehicle traffic, pedestrian traffic, existing tenant mix, parking convenience and any other factors that may be relevant to your market. If the site is or will be owned by an entity that is owned by you in whole or in part, we may also consider whether the rent to be charged is commercially reasonable based on the current market conditions and we may require you to submit a proforma and/or proposed draft lease. We will endeavor to approve or disapprove the site within 30 days after we receive the information and materials to evaluate the proposed site. Once we have approved your location, we will amend your Franchise Agreement to show the specific location as the only location where you are authorized to operate your Buona Business.
For Developers, as you establish each location under the Area Development Agreement, we will determine whether a site you propose is approved based on our then-current for approving a site.
Once we have approved a site, you will prepare and submit a letter of intent to the landlord for the site and obtain a proposed lease. We must approve the letter of intent for your lease and the lease for your approved site before you execute them. The factors we consider in approving a lease include but are not limited to whether the terms are commercially reasonable based on the current market conditions, the length of the term, and the rights to cure upon default. In addition, a condition of approval of the lease will be the agreement of the landlord to execute our form of Addendum to Lease and Collateral Assignment of Lease that is attached to the Franchise Agreement as Exhibit B, or alternatively providing similar language in the executed lease in a form approved by us. These requirements apply whether the lessor is an unrelated third party or is an affiliate of yours. If the lease is not approved by us, you must locate another site that meets our approval.
You will provide a copy of the executed lease to us. You will provide to us the names and contact information for your landlord and/or management companies of the approved site of your Buona Business. We reserve the right to contact your landlord and/or management company for the purposes of assessing your performance and customer satisfaction.
You may not relocate your Buona Business without first obtaining our prior written consent.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–46)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, site approval is a crucial step in establishing a Buona Business. The factors Buona considers when approving a site include location, size, suitability, layout, access, and visibility. Buona also assesses the proximity to other businesses and competitors, considering their location and nature. Population density and demographics, household income, vehicle and pedestrian traffic, existing tenant mix, and parking convenience are also evaluated. Any other factors relevant to the specific market are taken into account as well.
If the site is owned by an entity affiliated with the franchisee, Buona may examine whether the rent is commercially reasonable based on current market conditions. In such cases, Buona may request a proforma and/or a proposed draft lease. Buona aims to provide a decision on site approval within 30 days of receiving all necessary information and materials. Once a site is approved, the Franchise Agreement will be amended to specify the approved location as the only authorized location for the Buona Business.
For developers establishing multiple locations under an Area Development Agreement, Buona will determine site approval based on its then-current criteria. Before a franchisee can lease or purchase a site, they must submit a description of the site along with any other required information. The franchisee must submit a site acceptable to Buona within 9 months of signing the franchise agreement. If Buona disapproves of a proposed site, the franchisee must select and submit an alternative site for approval. Failure to obtain written approval within the specified timeframe may result in termination of the Franchise Agreement.
Buona also requires approval of the letter of intent for the lease and the lease itself before execution. Factors considered for lease approval include commercially reasonable terms, the length of the term, and rights to cure upon default. A condition of lease approval is the landlord's agreement to execute Buona's standard Addendum to Lease and Collateral Assignment of Lease, or similar language approved by Buona included in the lease. These lease requirements apply regardless of whether the lessor is a third party or an affiliate of the franchisee. If the lease is not approved, the franchisee must find another suitable site. The franchisee must provide Buona with a copy of the executed lease and contact information for the landlord and/or management companies. Buona reserves the right to contact the landlord or management company to assess franchisee performance and customer satisfaction. Relocation of the Buona Business is not permitted without prior written consent from Buona.