Does the Buona Franchise Agreement addendum apply to both single and dual brand agreements?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ed hereto | | ("Development Schedule"). Time is of the essence of this Agreement. Each Buona restaurant franchise must | | be established and operated pursuant to a separate Franchise Agreement ("Franchise Agreement") to be | | - | | 1 | | - | | ADA 2025 | | FRANCHISOR INITIALS | | DEVELOPER INITIALS |
entered into by you (or an entity owned by your Owners) and us. 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.
- 1.3 Except as otherwise provided in this Agreement, and as long you are in compliance with the Development Schedule and otherwise in compliance with this Agreement, we shall not establish, nor license anyone other than Developer the right to establish any Buona Restaurant in the Development Area prior to the expiration of the Development Schedule set forth in Exhibit B. As an alternative to a contiguous Development Area in which all Franchised Restaurants will be developed, we may designate a separate Development Area for each Franchised Restaurant to be developed and each specified Development Area will expire according to the development deadlines for that particular Franchised Restaurant as set forth in Exhibit B.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to the 2025 Buona Franchise Disclosure Document, an addendum to the Franchise Agreement will incorporate terms of the Development Agreement relating to payments due under each Franchise Agreement. This addendum applies to both single brand and dual brand agreements.
Specifically, for each additional Franchised Restaurant developed under the Development Agreement, a separate single brand or dual brand Franchise Agreement must be executed. The amount of the Development Fee paid for each additional Franchised Restaurant will be credited against the Initial Franchise Fee due under each additional single brand and/or dual brand Franchise Agreement.
This means that prospective Buona franchisees entering into a Development Agreement should expect the addendum to modify the standard Franchise Agreement, particularly concerning payment terms tied to the Development Agreement, regardless of whether they choose a single or dual-brand franchise. Franchisees should carefully review the addendum and how it affects their payment obligations, especially when planning multiple locations under a Development Agreement.