Is the franchisee ultimately responsible for selecting the site for their Buona Business, even with location research and assistance from Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
While we provide you location research and assistance in selecting your site as we deem advisable, (including real estate and demographic analysis subject to the availability of our personnel (Franchise Agreement, Section 9.2(b)), it is your responsibility to decide on the location of your site for the Buona Business, subject to our approval (Franchise Agreement, Section 1.1 and Exhibit A).
You are responsible for locating a site for your Buona Business, subject to our site approval process. Before leasing or purchasing the site for your Buona Business, you must submit to us, in the form we specify, a description of the site, with other information and materials we may reasonably require. You must submit a proposed site that is acceptable to us within 9 months of signing the franchise agreement. If we disapprove of a proposed site, you must select and submit another site, subject to our consent. If you have not obtained our written approval of a site within these time frames, we may terminate your Franchise Agreement.
The factors we consider in approving sites include but are not limited to location, size, suitability, layout, access and visibility of the proposed location, proximity to other businesses, location and nature of any competitors, population density and demographics, household income, vehicle traffic, pedestrian traffic, existing tenant mix, parking convenience and any other factors that may be relevant to your market. If the site is or will be owned by an entity that is owned by you in whole or in part, we may also consider whether the rent to be charged is commercially reasonable based on the current market conditions and we may require you to submit a proforma and/or proposed draft lease. We will endeavor to approve or disapprove the site within 30 days after we receive the information and materials to evaluate the proposed site. Once we have approved your location, we will amend your Franchise Agreement to show the specific location as the only location where you are authorized to operate your Buona Business.
Once we have approved a site, you will prepare and submit a letter of intent to the landlord for the site and obtain a proposed lease. We must approve the letter of intent for your lease and the lease for your approved site before you execute them. The factors we consider in approving a lease include but are not limited to whether the terms are commercially reasonable based on the current market conditions, the length of the term, and the rights to cure upon default. In addition, a condition of approval of the lease will be the agreement of the landlord to execute our form of Addendum to Lease and Collateral Assignment of Lease that is attached to the Franchise Agreement as Exhibit B, or alternatively providing similar language in the executed lease in a form approved by us. These requirements apply whether the lessor is an unrelated third party or is an affiliate of yours. If the lease is not approved by us, you must locate another site that meets our approval.
You will provide a copy of the executed lease to us. You will provide to us the names and contact information for your landlord and/or management companies of the approved site of your Buona Business. We reserve the right to contact your landlord and/or management company for the purposes of assessing your performance and customer satisfaction.
You may not relocate your Buona Business without first obtaining our prior written consent.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–46)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee is ultimately responsible for selecting the location for their Buona Business. While Buona may provide location research and assistance in selecting a site as they deem advisable, the final decision on the location rests with the franchisee, subject to Buona's approval. This includes real estate and demographic analysis, subject to the availability of Buona's personnel.
Before a franchisee can lease or purchase a site, they must submit a description of the site along with any other required information to Buona for approval. The franchisee has a limited time frame of 9 months from signing the franchise agreement to submit a proposed site that is acceptable to Buona. If Buona disapproves of the proposed site, the franchisee must select and submit another site for consideration. Failure to obtain written approval within the specified timeframe may result in the termination of the Franchise Agreement.
Buona considers various factors when approving sites, including location, size, suitability, layout, access, visibility, proximity to other businesses, the competitive landscape, population density, demographics, household income, traffic, tenant mix and parking. If the franchisee or an entity they own has an ownership stake in the site, Buona may also assess whether the rent is commercially reasonable and may request a proforma or draft lease. The franchisor endeavors to approve or disapprove the site within 30 days after receiving the necessary information.
Once Buona approves a site, the franchisee must then prepare and submit a letter of intent to the landlord and obtain a proposed lease. Buona must approve both the letter of intent and the lease before the franchisee executes them. Factors considered for lease approval include commercially reasonable terms, the length of the term, and rights to cure upon default. Additionally, the landlord must agree to execute Buona's form of Addendum to Lease and Collateral Assignment of Lease. If the lease is not approved, the franchisee must find another site that meets Buona's approval. The franchisee must also provide Buona with a copy of the executed lease and contact information for the landlord and/or management companies. The franchisee may not relocate their Buona Business without prior written consent from Buona.