In the Buona franchise agreement, can the Franchisor unilaterally waive or reduce any obligation of the franchisee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of such transfer, Franchisor reserves the right to waive conditions or requirements contained in Section 15.3 in its sole discretion and to require the Principals of the transferee to execute a Guaranty and Assumption of Franchisee's Obligations as required by Section 6.1.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
Based on the 2025 Buona Franchise Disclosure Document, Buona reserves the right to waive certain conditions related to franchise transfers. Specifically, if a franchisee transfers their interest, Buona can waive requirements outlined in Section 15.3 of the franchise agreement.
This waiver is at Buona's sole discretion, meaning they have the authority to decide whether or not to apply these conditions in a transfer situation. However, even with a waiver of conditions, Buona may still require the new Principals (owners/operators) to execute a Guaranty and Assumption of Franchisee's Obligations, as per Section 6.1 of the agreement. This ensures that the new operators are legally bound to fulfill the original franchisee's responsibilities.
This clause provides Buona with flexibility during franchise transfers, allowing them to expedite or simplify the process if they deem it appropriate. However, it also means that a franchisee cannot count on these conditions being waived, as the decision rests solely with Buona. Prospective franchisees should understand that while Buona can be flexible, they also prioritize maintaining the integrity of the franchise system and ensuring obligations are met.