Can a Buona franchisee secure financing or purchase property before the site is approved by the franchisor?

According to Buona's 2025 Franchise Disclosure Document, a franchisee or their affiliated entity is prohibited from securing financing or purchasing property for the franchise location until Buona has approved the site. This restriction is in place to ensure that the chosen location meets Buona's standards and has the potential for success.

Before entering into a lease, a prospective Buona franchisee must submit a site evaluation form, a letter of intent, a proposed lease, or other evidence demonstrating favorable prospects for securing the site. Buona has the discretion to determine the factors it will consider when approving or disapproving a site, including the location's characteristics, the premises, and the financial terms of the proposed purchase agreement or lease. If the franchisee intends to lease the site from an affiliated entity, Buona may require a proforma and/or draft lease before making a determination about site approval.

This requirement protects both Buona and the franchisee. By maintaining control over site selection, Buona can ensure brand consistency and minimize the risk of franchisees investing in unsuitable locations. For the franchisee, this guidance can prevent significant financial losses associated with a poorly chosen site. It is a common practice in franchising for franchisors to have site approval authority, as location is often a critical factor in the success of the business.