For Buona franchises, how long does a developer have to commence claims or actions related to the Franchise Agreement, the relationship with the Franchisor, or the Development Schedule, before such claims are barred?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for payments owed by one party to the other, and unless prohibited by applicable law, any and all claims and actions arising out of or relating to this Agreement (including, but not limited to, the offer and sale of this franchise), the relationship of Developer and Franchisor, or Developer's Development Schedule, brought by Developer must be commenced within one (1) year from the occurrence of the events giving rise to such claims or action, or such claim or action shall be barred.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a developer has a limited time to bring claims or actions against Buona. Specifically, any claims or actions arising from the Franchise Agreement, the relationship between the developer and Buona, or the Development Schedule must be commenced within one year. This one-year period starts from the date the events giving rise to the claim or action occurred.
This limitation does not apply to payments owed by either party to the other, and it is subject to applicable law, which means that statutory regulations may override this clause in certain jurisdictions. If a developer fails to initiate a claim or action within this one-year timeframe, they will be barred from pursuing it later.
This type of limitation on actions is relatively common in franchise agreements, as it provides both parties with a defined period for resolving disputes and prevents legal issues from lingering indefinitely. Prospective Buona developers should be aware of this clause and consult with legal counsel to understand its implications and ensure they take timely action if a dispute arises.