Does the Buona franchise agreement require the franchisor to enter into any Arrearage Agreement with the franchisee?

Based on the 2025 Buona Franchise Disclosure Document excerpts provided, there is no mention of a required "Arrearage Agreement" between Buona and its franchisees. The document outlines various aspects of the franchise agreement, including franchisee obligations, site selection, use of proprietary marks, and renewal conditions. However, it does not specify any formal agreement related to outstanding debts or overdue payments (arrearages).

While the FDD excerpts do not explicitly discuss Arrearage Agreements, Item 23 details the conditions for renewal, stating that the franchisee must have "paid or otherwise fully satisfied all monetary obligations owed by Franchisee to Franchisor and its Affiliates and to designated suppliers and any indebtedness of Franchisee that is guaranteed by Franchisor, and Franchisee has timely paid or otherwise satisfied these obligations throughout the Term." This implies that franchisees must remain current on all payments to Buona and its affiliates to maintain good standing and be eligible for renewal.

A prospective Buona franchisee should directly inquire with the franchisor about their policies regarding arrearages, potential payment plans, or any informal agreements that might be available if a franchisee falls behind on payments. Understanding these policies is crucial for managing financial risks and ensuring the long-term viability of the franchise.