Does the Buona franchise agreement require the franchisee to acknowledge receipt of the Franchise Disclosure Document at least 14 days prior to the agreement's execution?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS RECEIVED A COMPLETED COPY OF THIS AGREEMENT, THE EXHIBITS HERETO, IF ANY, AND THE AGREEMENTS RELATING THERETO, IF ANY, PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED. FRANCHISEE FURTHER ACKNOWLEDGES THAT FRANCHISEE HAS RECEIVED THE FRANCHISE DISCLOSURE DOCUMENT REQUIRED BY THE TRADE REGULATION RULE OF THE FEDERAL TRADE COMMISSION ENTITLED "DISCLOSURE REQUIREMENTS AND PROHIBITIONS CONCERNING FRANCHISING AND BUSINESS OPPORTUNITY VENTURES" AT LEAST FOURTEEN (14) DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED, APPLICABLE BY STATE.
- (b) FRANCHISEE RECOGNIZES AND UNDERSTANDS THAT IT MAY INCUR OTHER EXPENSES AND/OR OBLIGATIONS AS PART OF THE INITIAL INVESTMENT IN THE FRANCHISED BUSINESS WHICH THE TERMS OF THIS AGREEMENT MAY NOT ADDRESS, AND WHICH INCLUDE WITHOUT LIMITATION: OPENING ADVERTISING, EQUIPMENT, FIXTURES, OTHER FIXED ASSETS, CONSTRUCTION, LEASEHOLD IMPROVEMENTS AND DECORATING COSTS AS WELL AS WORKING CAPITAL NECESSARY TO COMMENCE OPERATIONS.
- (c) No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the
franchise.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee must acknowledge receiving the Franchise Disclosure Document (FDD) at least 14 days before signing the franchise agreement. This acknowledgement confirms that Buona provided the FDD as required by the Federal Trade Commission's franchise rule. This rule ensures prospective franchisees have enough time to review the document and make an informed investment decision.
This requirement protects the franchisee by ensuring they have adequate time to consider the risks and benefits of investing in a Buona franchise. The 14-day review period allows potential franchisees to consult with advisors, conduct due diligence, and fully understand the terms of the franchise agreement before committing to the investment. It is a standard practice in franchising to provide this review period.
Buona's franchise agreement also stipulates that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Buona. This provision further protects the franchisee's rights and ensures they cannot inadvertently relinquish legal protections during the franchise commencement process.