What is the Buona franchisee's obligation regarding structural changes during a Franchised Business Renovation for Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are obligated to complete a full renovation of their franchised business when required by Buona. This includes structural changes, remodeling, and redecoration to meet the then-current design criteria for Buona businesses. This renovation, referred to as a "Franchised Business Renovation," encompasses various aspects of the business, such as 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 franchisee is responsible for the costs associated with the Franchised Business Renovation. However, Buona limits the frequency of these renovations, requiring a franchisee to conduct a Franchised Business Renovation only once during the term of the franchise agreement. Furthermore, a franchisee is not required to perform a renovation if there is less than one year remaining in the term.
This obligation ensures that all Buona locations maintain a consistent brand image and meet current standards, which is common in franchising. Franchisees should be aware of the potential costs associated with these renovations and factor them into their financial planning. It is also important to note that the franchisee has other ongoing obligations to operate the franchised business according to Buona's standards and specifications.