Can the form of the Buona Franchise Agreement change between the execution of the Development Agreement and the execution of individual Franchise Agreements?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Franchise Agreement shall be in the form of Franchise Agreement being offered by us at the time you execute the Franchise Agreement, which may differ from the form of Franchise Agreement being offered by us on the date of execution of this Agreement, except that an addendum to the Franchise Agreement shall be entered into to incorporate terms of this Agreement relating to payments due under each Franchise Agreement. The terms and conditions of each such Franchise Agreement shall control the establishment and operation of such Buona Restaurant.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the form of the Franchise Agreement that Buona offers may change between the time a developer signs the Development Agreement and the time they execute individual Franchise Agreements for specific restaurant locations. The Franchise Agreement that is current at the time of the individual agreement's execution will be the one used, although an addendum will incorporate terms from the Development Agreement related to payments due.
This means that prospective Buona developers should be aware that the terms of the Franchise Agreement they ultimately sign for each location could be different from what they initially reviewed when signing the Development Agreement. This is a fairly common practice in franchising, as franchise systems evolve and update their agreements over time.
It is important for developers to carefully review the 'then-current' Franchise Agreement each time they are ready to sign a new franchise agreement to understand any changes. While the core business model is likely to remain consistent, specific clauses related to fees, operating procedures, or legal compliance could be updated. The document also specifies that the terms and conditions of each Franchise Agreement shall control the establishment and operation of each Buona Restaurant.
Buona franchisees should pay close attention to any addendums to the Franchise Agreement that incorporate terms from the Development Agreement, especially those relating to payments. This ensures that the financial obligations and benefits agreed upon in the Development Agreement are properly reflected in each individual Franchise Agreement.