What are the franchisee's obligations regarding the use of trademarks for a Buona franchise as described in Item 13, and how do these obligations relate to the restrictions on sources of products and services in Item 8?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
specifications for furniture, fixtures and equipment, restaurant design and layouts, operating procedures, and management programs, all of which may be changed, improved, and further developed by Franchisor from time to time;
WHEREAS, Franchisor identifies the System by means of certain trade names, service marks, trademarks, logos, emblems, and other indicia of origin, including but not limited to the mark "Buona," "Buona Beef" and such other trade names, service marks, trademarks, logos, designs, and trade dress as are now, or may hereafter, be designated by Franchisor for use in connection with the System (collectively, the "Marks");
WHEREAS, Franchisor has received the nonexclusive right to use and sublicense the use of the Marks and System from its affiliate The Buona Companies L.L.C., and Franchisor and Franchisor's affiliate continue to develop, use, and control the use of such Marks to identify to the public the source of services and products marketed hereunder in the System and to represent the System's high standards of quality, appearance, and service;
WHEREAS, Franchisee wishes to be assisted, trained, and licensed by Franchisor as a Buona franchisee and licensed to use the System in connection therewith; and
WHEREAS, Franchisee understands the importance of the System and Buona's high and uniform standards of quality, cleanliness, appearance, and service, and the necessity of opening and operating Buona Businesses in conformity with the System.
NOW, THEREFORE, the parties hereto agree as follows:
I. APPOINTMENT
- 1.1 Grant of Franchise. For the Term (as defined in Section 2.1), Franchisor grants to Franchisee, and Franchisee accepts from Franchisor, a non-exclusive license to operate one Buona Business, and Franchisee accepts the obligation to operate the Buona Business during the Term, in the following general area: _______________________________. Upon approval of Franchisee's location by Franchisor, Franchisor and Franchisee shall execute Exhibit A attached hereto which will identify the Approved Location.
- 1.2 Operation of the Franchised Business. Franchisee shall operate the Franchised Business, and use the Marks and the System in connection with the Franchised Business, as the Marks and the System may be modified, improved and developed by Franchisor from time to time, only in accordance with the terms and conditions of this Agreement. Franchisee shall use its best efforts to develop and promote the Franchised Business. All Buona products must be sold by Franchisee only from the Approved Location. Franchisee may not use other channels of distribution such as the internet, catalog sales, telemarketing or other direct marketing to make sales outside of and apart from the operation of the Franchised Business at the Approved Location without Franchisor's prior written consent, which may be withheld by Franchisor in its sole discretion.
- 1.3 Protected Area.
What This Means (2025 FDD)
Based on the 2025 FDD, Buona franchisees are granted a non-exclusive license to operate a Buona Business and use the brand's trademarks and system, as it evolves, according to the Franchise Agreement's terms. Franchisees must dedicate their best efforts to developing and promoting the Franchised Business. This obligation is tied to maintaining Buona's standards of quality, cleanliness, appearance, and service, reinforcing the importance of operating in conformity with the established system.
Item 8 specifies that franchisees must purchase certain items, including ingredients, food products, packaging, equipment, signs, and marketing materials, from designated or approved suppliers. Some suppliers may include Buona or its affiliates. This restriction ensures uniformity and quality control across all franchise locations, protecting the trademarks and brand reputation. For instance, Authentic Brands of Chicago, LLC, an affiliate, is the only designated supplier for Italian beef, and The Buona Companies, L.L.C., another affiliate, is an approved supplier of marketing materials.
The Franchise Agreement emphasizes the importance of the Buona system and the necessity of maintaining high standards. By requiring franchisees to source specific products from approved suppliers, Buona aims to control the quality and consistency of the products and services offered under its trademarks. This control helps to ensure that customers receive a consistent experience at any Buona location, thereby reinforcing the brand's reputation and protecting the value of its trademarks. Franchisees must also adhere to standards and specifications outlined in the manual regarding equipment, computer hardware/software, signs, and insurance.