For a Buona franchise, when must the franchise agreement be executed?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
l times own a majority control over the entity that owns each Buona franchise developed hereunder. You may develop and open any Buona Restaurant earlier than the date set forth in the Development Schedule as long as you do so in compliance with this Agreement and the applicable Franchise Agreement.
- 3.2 You must develop each Buona Restaurant in the following manner:
- (a) By giving us written notice of your intention to begin development of the next Buona Restaurant at least thirty (30) days before the execution of the Franchise Agreement for the applicable restaurant;
- (b) By submitting to us a description of the proposed site, together with a letter of intent in a form approved by us or other evidence satisfactory to us which confirms your favorable prospects for obtaining the proposed site;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if you intend to develop a Buona Restaurant, you must provide written notice at least thirty (30) days before executing the Franchise Agreement for that specific restaurant. This advance notice allows Buona to review and approve the proposed site.
Prior to executing the Franchise Agreement, you must submit a description of the proposed site, along with a letter of intent or other satisfactory evidence confirming favorable prospects for obtaining the site. Additionally, you need to execute a lease or purchase agreement for the proposed site, in a form approved by Buona, and meet all other requirements for developing and opening the restaurant.
Concurrent with the execution of the Area Development Agreement, you must also execute a Franchise Agreement for the first Buona Restaurant to be developed. At that time, you are obligated to pay the initial franchise fee of $40,000 due under the Franchise Agreement. For any subsequent Franchise Agreements under the Area Development Agreement, the initial franchise fee is $32,000, provided you are in compliance with the Development Schedule at the time of signing.