What is a Buona franchisee's obligation regarding inspections of their business premises by Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
chisee shall pay for the cost of the reinspection, either reimbursing Franchisor for the costs it incurs in sending a representative to conduct the reinspection (compensation for the representative and travel costs) or in paying the amount charged by a third party service.
10.16 Quality Assurance Audits. Franchisee shall grant to Franchisor, its representatives and third party vendors designated by Franchisor the right to enter upon the premises of the Franchised Business at any time during ordinary business hours and without advance notice for the purpose of conducting inspections of the Franchisee's Franchised Business and its operations. Franchisee shall cooperate with Franchisor's representatives or vendors and permit them to (i) inspect the premises and the equipment; (ii) observe the operations of the Franchised Business for such consecutive or intermittent periods as they deem necessary, including the taking of photos and/or videos; (iii) interview employees of the Franchisee; (iv) interview customers of Franchised Business; and (v) to select inventory items, products, materials and supplies for testing and evaluation. Without limiting Franchisor's other rights under this Agreement, Franchisor may require Franchisee to immediately take such steps as may be necessary to correct the deficiencies detected during any such inspection, including but not limited to desisting from the further use of any practice or procedure, equipment or supplies, products or preparation methods, promotional materials, or other items or services that do not conform with Franchisor's then-current specifications, standards or requirements. Further, if Franchisor requires Franchisee to take steps to correct the deficiencies during an inspection, Franchisor shall conduct a re-inspection after a reasonable time to determine if the deficiencies have been corrected. Franchisee shall pay for the cost of the re-inspection, either reimbursing Franchisor for the costs it incurs in sending a representative to conduct the re-inspection (compensation for the representative and travel costs) or in paying the amount charged by a third party service.
10.17 Generative AI. Franchisee will not, without Franchisor's prior written consent, utilize any generative artificial intelligence software, tools, or technologies, including, natural language processing, deep learning algorithms, or machine learning models (collectively, "Generative AI") directly or indirectly in the operation of the Franchised Business, including without limitation, in advertising, promotion, or marketing of the Franchised Business, communications with customers, business planning, analysis or optimization, or in any social media.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees must allow Buona, its representatives, and designated third-party vendors to access their business premises during regular business hours without prior notice to conduct inspections. These inspections aim to assess the franchisee's business and its operations, ensuring compliance with Buona's standards.
During these inspections, Buona's representatives or vendors are permitted to inspect the premises and equipment, observe operations (including taking photos and videos), interview employees and customers, and select inventory items for testing and evaluation. Franchisees are obligated to cooperate fully with these inspections and provide any requested assistance.
If deficiencies are detected during an inspection, Buona may require the franchisee to take immediate corrective action. This could involve ceasing the use of non-conforming practices, equipment, supplies, products, preparation methods, or promotional materials. Following the initial inspection, Buona may conduct a re-inspection to verify that the deficiencies have been corrected, and the franchisee is responsible for covering the costs associated with this re-inspection, whether it's reimbursing Buona for its representative's expenses or paying a third-party service fee.
Buona also retains the right to inspect a franchisee's operations and business premises at reasonable times to ensure the franchisee properly uses the brand's marks. Franchisees must cooperate with Buona's representatives during these inspections and provide any reasonably requested assistance.