Is the Buona Franchise Agreement binding upon the heirs, administrators, personal representatives, assigns, and successors in interest of the parties?

According to Buona's 2025 Franchise Disclosure Document, the Franchise Agreement is binding upon the heirs, administrators, personal representatives, assigns, and successors in interest to the parties to the Agreement. This means that the obligations and benefits of the franchise agreement extend beyond the original franchisee to those who inherit or otherwise acquire their interest.

However, in the event of transfer by devise or inheritance, if the heirs or beneficiaries cannot meet the conditions of the agreement, the personal representative of the deceased franchisee has a limited time frame to sell or transfer the interest. Specifically, they have no more than twelve months from the franchisee's death to complete the sale or transfer, and this sale or assignment is subject to all the standard terms and conditions for assignments and transfers outlined in the agreement. If the interest is not sold or assigned within this 12-month period, Buona has the right to terminate the agreement.

Buona may, at its discretion, agree to manage the franchised business until the franchisee's interest is transferred. If Buona takes over operations, the franchisee's estate is responsible for paying Buona's management fees, travel expenses, room and board, and other incurred expenses. This ensures continuity of the business while the transfer is being arranged, but it also places a financial burden on the estate.

Involuntary transfers of the Franchise Agreement by the franchisee are not binding on Buona and can lead to termination of the agreement without an opportunity to cure. Additionally, the franchisee cannot use the agreement as security for a loan or encumber it in any way without Buona's prior written consent. Any attempt to transfer the agreement, whether or not binding on Buona, can result in termination unless the transfer is authorized in writing by Buona. These stipulations protect Buona's interests and ensure that any transfer of the franchise meets their standards and requirements.