Does the Buona Franchise Disclosure Document include a Franchisee Acknowledgement Questionnaire as a contract?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
NOTE 5 – SUBSEQUENT EVENTS:
In accordance with the requirements in FASB ASC Paragraph 855 Subsequent Events, the Company has evaluated all subsequent events through April 14, 2025 (the date the Company's financial statements were available to be issued), with regards to the financial statements and notes to those financial statements. There were no material subsequent events that required recognition or additional disclosure in these financial statements.
EXHIBIT E FRANCHISE ACKNOWLEDGEMENT QUESTIONNAIRE
NOTICE FOR PROSPECTIVE FRANCHISEES WHO RESIDE IN, OR WHO INTEND TO OPERATE THE FRANCHISED BUSIESS IN THE STATE OF CALIFORNIA: DO NOT COMPLETE THIS QUESTIONNAIRE OR RESPOND TO ANY OF THE QUESTIONS CONTAINED IN THIS QUESTIONNAIRE.
FRANCHISE ACKNOWELDGEMENT QUESTIONNAIRE
As you know Chicago's Original Italian Beef Franchising, LLC (we" or "us"), and you are preparing to enter into a Franchise Agreement for the operation of a Buona Franchise. You cannot sign or date this Questionnaire the same day as the Receipt for the Franchise Disclosure Document but you must sign and date it the same day you sign the Franchise Agreement. Please review each of the following questions carefully and provide honest responses to each question. If you answer "No" to any of the questions below, please explain your answer on the next page.
[Item 22: CONTRACTS]
ITEM 22 CONTRACTS
The following agreements regarding the offering of a Franchise are attached as exhibits to this Franchise Disclosure Document.
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- Franchise Agreement (Exhibit B)
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- Dual Brand Franchise Agreement (Exhibit B-1)
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- Area Development Agreement (Exhibit C)
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- Dual Brand Area Development Agreement (Exhibit C-1)
You must complete and sign the Exhibit E Franchisee Acknowledgement Questionnaire before you sign the Franchise Agreement. 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 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
Yes, the 2025 Buona Franchise Disclosure Document (FDD) includes a Franchisee Acknowledgment Questionnaire as Exhibit E. According to Item 22, Contracts, the franchisee must complete and sign this questionnaire before signing the Franchise Agreement. However, franchisees in California are instructed not to complete the questionnaire.
The questionnaire requires prospective Buona franchisees to answer a series of questions, indicating whether they have received and understood key documents and information related to the franchise. These questions cover topics such as receipt of the Franchise Agreement and Franchise Disclosure Document, discussions with existing franchisees, and understanding of dispute resolution processes. If a franchisee answers "No" to any question, they must provide an explanation.
It is important to note that while the franchisee must complete the Acknowledgment Questionnaire, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Buona. This provision is designed to protect franchisees' rights and ensures that they are not bound by acknowledgments that could limit their legal recourse. The franchisee cannot sign or date this Questionnaire the same day as the Receipt for the Franchise Disclosure Document but must sign and date it the same day the franchisee signs the Franchise Agreement.