Does the Buona franchise agreement allow for a jury trial in disputes between Buona and its franchisees?
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): | |||
| Questionnaire Number | Explanation of Negative Response | ||
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to the 2025 Buona Franchise Disclosure Document, franchisees may be required to arbitrate claims against the franchisor. Item 22 of the FDD includes a questionnaire that asks franchise applicants, "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 indicates that the standard Buona franchise agreement likely contains a clause requiring franchisees to resolve disputes through arbitration rather than jury trials. Arbitration typically involves a neutral third party who hears both sides of the dispute and makes a binding decision. This process is generally faster and less expensive than a traditional court trial.
For a prospective Buona franchisee, this means that if a dispute arises with Buona, they will likely be required to go through arbitration in Illinois. Franchisees should carefully consider the implications of this clause, including the costs associated with arbitration, the limitations on discovery and appeal, and the potential for a less favorable outcome compared to a jury trial. It is advisable to seek legal counsel to fully understand the implications of the arbitration clause before signing the Franchise Agreement.