Does the Buona Franchise Acknowledgement Questionnaire ask if it's understood that disputes must be arbitrated in Illinois?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| l. | Yes | No | Have you received the completed Franchise Agreement and each exhibit attached to it? |
|---|---|---|---|
| 2. | Yes | No | Have you received the Franchise Disclosure Document we provided? |
| 3. | Yes | No | If you are purchasing a Buona/Rainbow Cone Dual Brand franchise, did you also receive the Five Flavors Franchising, LLC Franchise Disclosure Document? |
| 4. | Yes | No | Did you sign a receipt for the Franchise Disclosure Document (or both of them) indicating the date you received it? |
| 5. | Yes | No | Did the receipt for the Franchise Disclosure Document identify the franchise sellers with which you have had discussions about the franchise opportunity? |
| 6. | Yes | No | If you are entering into an Area Development Agreement, have you received the completed Area Development Agreement and each exhibit? |
| 7. | Yes | No | Have you spoken with existing Buona franchisees about the Buona Business? |
| 8. | Yes | No | Have you conducted an independent investigation of a Buona Business? |
| 9. | Yes | No | Do you understand all disputes or claims you may have arising out of or relating to the Franchise Agreement must be arbitrated in Illinois, if not resolved informally or by mediation? |
| 10. | Yes | No | Do you understand that you must satisfactorily complete the initial training course before we will allow your franchised business to open or consent to a transfer? |
| Signature of Franchise Applicant | Signature of Franchise Applicant | ||
| ---------------------------------- | ------------------------------------------------------------------- | ||
| Name (please print) | Name (please print) | ||
| Date | Date | ||
| EXPLANATION OF ANY NEGATIVE RESPONSES (REFER TO QUESTION NUMBER): |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Franchise Acknowledgement Questionnaire includes a question regarding the franchisee's understanding of arbitration. Specifically, it asks: "Do you understand all disputes or claims you may have arising out of or relating to the Franchise Agreement must be arbitrated in Illinois, if not resolved informally or by mediation?" This question requires the franchisee to acknowledge whether they understand that any disputes related to the Franchise Agreement will be arbitrated in Illinois if informal resolution or mediation fails.
This acknowledgement is significant because it confirms that the franchisee is aware of the dispute resolution process outlined in the Franchise Agreement. By answering "Yes," the franchisee indicates they understand and agree to the condition that arbitration, if necessary, will occur in Illinois. This can have implications for the franchisee, as they may need to travel to Illinois for arbitration proceedings, potentially incurring travel and legal expenses.
However, it is important to note that the Illinois Addendum modifies some aspects of the franchise agreement for franchisees operating in Illinois. While the agreement may provide for arbitration to take place outside of Illinois, Illinois law governs the Franchise Agreement. Franchisees should carefully review both the Franchise Agreement and any state-specific addenda to fully understand their rights and obligations regarding dispute resolution.