Is it the franchisee's responsibility to decide on the location of their site for the Buona Business, subject to Buona's approval?
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.
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 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 responsible for finding a location for their Buona Business. However, this selection is subject to Buona's approval. Buona may provide location research and assistance in selecting a site as they deem advisable, including real estate and demographic analysis subject to the availability of their personnel.
The FDD states that 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 9 months from signing the franchise agreement to submit an acceptable site. If Buona disapproves of the proposed site, the franchisee must select and submit another one for consideration. Failure to obtain written approval within this 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 nature of any competitors, population density and demographics, household income, vehicle and pedestrian traffic, existing tenant mix, and parking convenience. If the franchisee or an entity they own has ownership in the site, Buona may also assess whether the rent is commercially reasonable and may request a proforma or draft lease.
Once Buona approves a site, the franchisee must then prepare and submit a letter of intent to the landlord and obtain a proposed lease, both of which also require Buona's approval. The franchisee cannot relocate their Buona Business without obtaining prior written consent from Buona.