Can a Buona franchisee open a relocated Franchised Business without the onsite presence of Buona's representative?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) If Franchisee's lease for the premise of the Franchised Business terminates without fault of Franchisee, or expires without any possibility of renewal by Franchisee on commercially reasonable terms as determined by Franchisor, or if in the judgment of Franchisor and Franchisee there is a change in the character of the location of the Franchised Business sufficiently detrimental to its business potential to warrant its relocation, Franchisor shall grant permission for relocation of the Franchised Business to a location approved by Franchisor. Franchisee may not open a relocated Franchised Business without the onsite presence of Franchisor's representative, unless a waiver is requested in writing by Franchisee and approved in writing by Franchisor. Even if the aforementioned request and approval are granted, Franchisee must obtain Franchisor's written authorization, in its sole discretion, of the specific date that the Franchised Business may open. In the event of relocation, the parties will enter into an agreement which will set forth the new location for Franchisee's Franchised Business and a deadline by which Franchisee must open for business at the new location, after which time Franchisee will be obligated to resume paying the royalty and Marketing Fund Contributions whether or not the new location has opened for business. Until such time that the new location is open for business, the amount of the royalty and Marketing Fund Contribution will be based on the Franchisee's average weekly level of Gross Sales during the one-year period prior to closing the first Franchised Business. Any such relocation shall be at Franchisee's sole expense, and shall not be
undertaken without Franchisor's prior written consent. Franchisee shall pay to Franchisor a relocation fee in the amount of fifty percent (50%) of the then-current Initial Franchise Fee to cover Franchisor's services and associated costs in connection with such relocation, including those related to (i) reviewing and approving the new location and the construction drawings for the Franchised Business at its new location and (ii) providing additional on-site training and assistance. Franchisee shall pay fifty percent (50%) of the relocation fee when Franchisor grants the approval to relocate and the balance of the relocation fee upon Franchisor's acceptance of the new location for the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee generally needs Buona's representative to be present when opening a relocated franchise. However, the franchisee can request a waiver in writing from Buona to forgo the on-site presence of the representative. Buona must approve this waiver in writing. Even if the waiver is granted, the franchisee must still get written authorization from Buona for the specific date the relocated business can open.
If a franchisee's lease terminates without their fault, expires without commercially reasonable renewal options, or if Buona and the franchisee agree that there's a detrimental change in the location's business potential, Buona will allow the franchise to relocate to a new location that Buona approves. The franchisee is responsible for all relocation expenses.
In the event of relocation, the franchisee will need to sign an agreement that includes the new location and a deadline for opening the relocated business. After this deadline, the franchisee is obligated to pay royalties and marketing fund contributions, regardless of whether the new location is open. Until the new location opens, these payments will be based on the average weekly gross sales from the previous year at the original location. Additionally, the franchisee must pay a relocation fee equal to 50% of the current initial franchise fee. 50% of the relocation fee is due when Buona approves the relocation, and the remaining balance is due upon Buona's acceptance of the new location.