factual

What must a Buona franchisee immediately turn over to Buona upon termination or expiration of the Franchise Agreement?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

XVII. EFFECT OF TERMINATION OR EXPIRATION

  • 17.1 Post-Termination Obligations. Upon termination or expiration of this Agreement, all rights granted to Franchisee under this Agreement will immediately terminate, Franchisee shall cease to be a licensed franchisee of Franchisor, and:
  • (a) Franchisee shall immediately cease to operate the Franchised Business as an Franchised Business, and shall not thereafter, directly or indirectly, represent to the public that the restaurant is or was a Franchised Business;
  • (b) Franchisee shall immediately and permanently cease to use, by advertising or in any manner whatsoever, any menus, recipes, confidential formulae, equipment, methods, procedures, techniques associated with the System, the Marks, and Franchisor's other trade names, trademarks and service marks associated with the System. In particular, and without limitation, Franchisee shall cease to use all signs, menus, advertising and promotional materials, stationery, forms, p

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee must immediately cease operating the Franchised Business as a Buona Franchised Business and must not represent to the public that the restaurant is or was a Buona Franchised Business. This means the franchisee can no longer use the Buona brand name or imply any affiliation with the franchise.

Additionally, the franchisee must immediately and permanently stop using any menus, recipes, confidential formulas, equipment, methods, procedures, and techniques associated with the Buona system. This includes refraining from using Buona's trade names, trademarks, and service marks in any manner, such as on signs, menus, advertising, promotional materials, stationery, and forms. This ensures that the franchisee does not continue to benefit from Buona's intellectual property and brand recognition after the agreement ends.

These post-termination obligations are standard in franchising to protect the brand's integrity and prevent former franchisees from unfairly competing using the franchisor's proprietary information and trademarks. Failure to comply with these requirements could result in legal action from Buona to enforce these provisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.