Does the Buona franchise agreement acknowledge that the franchisee may incur other expenses beyond those explicitly addressed in the agreement?

According to Buona's 2025 Franchise Disclosure Document, the franchise agreement acknowledges that a franchisee may incur costs for legal actions taken by Buona to enforce the agreement. Specifically, if Buona obtains an injunction or order of specific performance against the franchisee, the franchisee is responsible for covering Buona's associated costs. These costs include, but are not limited to, reasonable attorneys' fees, expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses, travel, and living expenses.

This means that beyond the standard fees and costs outlined in the FDD, a Buona franchisee could face significant additional expenses if they violate the franchise agreement and Buona pursues legal action to enforce compliance. This could include breaches related to the use of trademarks, non-disclosure, non-competition obligations, or any actions that harm Buona's brand or the franchise system. The franchisee also agrees to waive any claims for damages if it is later determined that the injunction or specific performance order was issued improperly.

It is typical in franchise agreements to include clauses that allow the franchisor to seek legal remedies for breaches of contract. The franchisee typically bears the costs if the franchisor prevails. This provision in Buona's franchise agreement serves as a deterrent against non-compliance and protects Buona's interests by ensuring that it can recover costs associated with enforcing the agreement. Prospective franchisees should carefully review the conditions under which Buona can seek injunctive relief or specific performance and the potential financial implications.