factual

What is the Buona franchisee's obligation regarding the modernization of the Franchised Business?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

and other franchisees so as to develop and maintain high and uniform operating standards, to increase the demand for Buona products and services and to protect the reputation and goodwill of Franchisor, the System and the Marks. Accordingly, Franchisee agrees that:

  • (a) Franchisee shall maintain, at all times during the Term, at Franchisee's expense, the premises of the Franchised Business and all fixtures, furnishings, signs, systems and equipment, in conformity with Franchisor's high standards and public image and to make such additions, alterations, improvements, repairs, and replacements (but no others, without Franchisor's prior written consent) as may be required by Franchisor from time to time, including but not limited to the following, at Franchisee's sole cost and expense:
  • i. To keep the Franchised Business in the highest degree of cleanliness, sanitation and repair, including but not limited to such periodic repainting, repairs or replacement of damaged or obsolete, furniture, fixtures and equipment, and replacement of obsolete signs, as Franchisor may reasonably direct;
  • ii. To meet and maintain the highest governmental standards and ratings applicable to the operation of the Franchised Business; and
  • iii. For the Franchised Business to be able to offer new products or services or to permit the Franchised Business to operate more efficiently.
  • (b) In addition to the maintenance described in (a) above, Franchisee must complete a full reimaging, renovation, refurbish and modernization of the Franchised Business, within the time frame required by Franchisor, including the building design, parking lot, landscaping, equipment, point of sale system, signs, interior and exterior decor items, fixtures, furnishings, trade dress, color scheme, presentation of trademarks and service marks, supplies and other products and materials, to meet the then-current design criteria for Buona Businesses, including but not limited to such structural changes, remodeling and redecoration and such modifications to existing improvements as may be necessary to do so (a "Franchised Business Renovation"). Franchisee shall only be required to conduct a Franchised Business Renovation once during the Term and shall not be required to perform a Franchised Business Renovation if there is less than one (1) year remaining in the Term. Nothing herein shall be deemed to limit Franchisee's other obligations during the Term to operate the Franchised Business in accordance with Franchisor's standards and specifications for the System including but not limited to the obligations set forth in this Article X.
  • 10.2 System Compliance. Franchisee shall operate the Franchised Business in strict conformity with such uniform methods, standards and specifications as Franchisor may from time to

time prescribe in the Manuals or otherwise in writing to insure that the highest degree of quality, service and cleanliness is uniformly maintained, and Franchisee shall refrain from any deviation from such methods, standards and specifications, and shall refrain from otherwise operating in any manner which reflects adversely on Franchisor's name and goodwill or on the Marks or the System. In connection therewith, Franchisee agrees as follows:

  • (a) To maintain in sufficient supply, and use at all times, only such ingredients, products, materials, supplies, and paper goods that conform to Franchisor's standards and specifications, and to refrain from deviating from such standards and specifications by using nonconforming items, without Franchisor's prior written consent, which Franchisor may withhold in its sole discretion;
  • (b) To sell or offer for sale only such products and menu items that have been expressly approved for sale in writing by Franchisor, and that meet Franchisor's uniform standards of quality and quantity and have been prepared in accordance with Franchisor's methods and techniques for product preparation; including Franchisor's recipes, cooking techniques and processes as designated in the Manuals. Franchisee shall not alter, dilute, substitute or otherwise change the quality or composition of any ingredients and materials. Franchisee acknowledges that such recipes, cooking techniques and processes are integral to the System and failure to adhere to such recipes, cooking techniques and processes (including the handling and storage of both ingredients and fully prepared menu items) shall be detrimental to the System and Marks;
  • (c) To sell or offer for sale the minimum menu items specified in the Manuals or otherwise in writing;
  • (d) To refrain from any deviation from Franchisor's standards and specifications for preparing, serving or selling the menu items, without Franchisor's prior written consent, which Franchisor may withhold in its sole discretion;
  • (e) Upon thirty (30) days' written notice from Franchisor, to sell or offer for sale only such food products or beverages produced by Franchisor's designated food or beverage suppliers in accordance with Section 10.3 below, and to discontinue selling or offering for sale such items as Franchisor may, in its discretion, disapprove in writing at any time in its sole discretion;
  • (f) To use the premises of the Franchised Business solely for the purpose of conducting the Franchised Business, and to conduct no other business or activity from the premises, whether for profit or otherwise, without Franchisor's prior written consent, which Franchisor may withhold in its sole discretion;
  • (g) To keep the Franchised Business open and in normal operation during such business hours as Franchisor may prescribe from time to time in the Manuals or otherwise in writing;
  • (h) To permit Franchisor or its agents, at any time during ordinary business hours, to remove from the Franchised Business samples of any ingredients, products, materials, supplies and paper goods used in the operation of the Franchised Business, without payment, in amounts reasonably necessary for testing by Franchisor or an independent laboratory to determine whether such samples meet Franchisor's then-current standards and specifications. In addition to any other remedies Franchisor may have under this Agreement, Franchisor may require Franchisee to bear the cost of such testing if any such ingredient, products, materials, supplier or paper goods have been obtained from a supplier not approved by Franchisor, or if the sample fails to conform to Franchisor's specifications;

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, franchisees are obligated to maintain the premises of their franchised business to meet Buona's standards. This includes keeping the business clean, sanitary, and in good repair, which may involve repainting, repairing or replacing furniture, fixtures, equipment, and signs as directed by Buona. Franchisees must also adhere to the highest governmental standards and ratings applicable to their business's operation. These maintenance and upgrade obligations ensure the Franchised Business can offer new products or services or operate more efficiently.

In addition to general maintenance, franchisees must complete a full reimaging, renovation, refurbishment, and modernization of their franchised business within a timeframe required by Buona. This renovation includes updates to the building design, parking lot, landscaping, equipment, point of sale system, signs, interior and exterior decor, fixtures, furnishings, trade dress, color scheme, presentation of trademarks and service marks, supplies, and other materials. The goal is to meet the current design criteria for Buona businesses, potentially involving structural changes, remodeling, and redecoration.

However, a franchisee is only required to conduct a full renovation once during the term of their agreement, and they are not required to do so if there is less than one year remaining in the term. Buona also retains the right to modify the System, including products, services, methods, standards, and even the building's design and appearance, to adapt to changes in technology, competition, and consumer trends. Franchisees must comply with these changes, provided they do not materially and unreasonably increase their obligations.

Buona aims to assist franchisees in maintaining uniform standards of quality, cleanliness, appearance, and service to protect the System's reputation. Franchisees are also required to purchase and use a point-of-sale system, computer system, and web-based platforms as specified by Buona, and to maintain and upgrade these systems as necessary. Buona has the right to access information generated by these systems for purposes related to the operation, management, and monitoring of the System.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.