When a Buona franchisee proposes to transfer their business, what documentation must they provide to Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
on the date of the transfer;
(c) The transferee must be of good moral character and reputation, in the reasonable judgment of Franchisor;
(d) Franchisor shall have determined, to its satisfaction, that the transferee's qualifications meet Franchisor's then-current criteria for new franchisees;
(e) The terms and conditions of the proposed transfer, including all financial terms of the proposed transfer, shall be provided in writing to Franchisor at least fifteen (15) business days prior to the proposed effective date of the transfer, and shall be approved in writing by Franchisor;
(f) The transferee shall execute, at Franchisor's option, (i) written assignment, in form satisfactory to Franchisor, pursuant to which the transferee shall assume all of the obligations of Franchisee under this Agreement and any other agreement relating to the Franchised Business to be transferred; or (ii) Franchisor's then-current form of dual brand Franchise Agreement and such other then-current ancillary agreements as Franchisor may reasonably require. The then-current form of the Franchise Agreement may contain new or significantly different terms, including but not limited to a higher royalty fee and advertising fund contribution and less territorial protection than contained in this Agreement. The then-current form of the Franchise Agreement will expire on the expiration date of this Agreement and will contain the same renewal rights, if any, as are available to Franchisee under this Agreement;
(g) Franchisee shall execute a general release in favor of Franchisor and its Affiliates of any claims it may have against Franchisor and its Affiliates, or their shareholders, officers, directors, members, managers, employees and agents, predecessors, successors and assigns relating to the Franchised Business, unconditionally releasing them from any and all claims Franchisee might have against Franchisor and its Affiliates, or their shareholders, officers, directors, members, managers, employees and agents, predecessors, successor and assigns, as of the date of the assignment;
(h) The transferee shall agree at its sole cost and expense, to complete a Franchised Business Renovation, within the time frame required by Franchisor, unless a Franchised Business Renovation was completed less than five (5) years prior to the date of the transfer, and perform such other scope of work as may be determined by Franchisor;
(i) The transferee and such other individuals as may be designated by Franchisor in the Manuals or otherwise in writing, must have successfully completed the training courses then in effect for new franchisees which will be covered by the Transfer Fee paid. However, the Transferee shall be responsible for payment for any onsite training fees incurred for onsite training conducted by Franchisor after the transfer;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their business must provide specific documentation to Buona for approval. The franchisee must provide the terms and conditions of the proposed transfer, including all financial terms, in writing to Buona at least 15 business days before the proposed effective date. This submission is required to allow Buona ample time to review and approve the transfer in writing.
In addition to the transfer terms, the franchisee may also need to ensure the transferee executes a written assignment, in a form satisfactory to Buona, assuming all obligations under the Franchise Agreement and any other related agreements. Alternatively, Buona may require the transferee to execute Buona's then-current form of Franchise Agreement, which might include new or significantly different terms such as higher royalty fees, advertising fund contributions, or less territorial protection. The franchisee must also execute a general release in favor of Buona and its affiliates, releasing them from any claims related to the franchised business as of the assignment date.
Furthermore, the franchisee needs to ensure that the transferee agrees to complete a Franchised Business Renovation at their sole cost and expense within the timeframe required by Buona, unless a renovation was completed less than five years before the transfer date. The transferee must also successfully complete the training courses then in effect for new franchisees. Finally, the franchisee may be required to execute a written guarantee of the transferee's obligations under the Agreement for up to three years from the transfer date, if Buona requests it.