Is Buona Franchisor considered a third-party beneficiary of the lease addendum?

According to Buona's 2025 Franchise Disclosure Document, Buona is indeed considered a third-party beneficiary of the lease addendum. The lease agreement between the lessor and the franchisee (lessee) explicitly states that Buona is a third-party beneficiary. This provision grants Buona certain rights and protections under the lease agreement, even though Buona is not a direct party to the lease.

This arrangement is beneficial for Buona as it allows them to enforce certain terms of the lease, ensuring that the franchisee operates the business in accordance with Buona's standards and requirements. For example, if the franchisee defaults on the lease, Buona, as a third-party beneficiary, may have the right to step in and take over the lease to protect its interests and maintain the Buona brand's presence at that location.

For a prospective Buona franchisee, this means that the lease agreement for their restaurant location will include an addendum that specifically benefits Buona. While this may seem like an additional layer of complexity, it ultimately aligns the interests of the landlord, the franchisee, and Buona, ensuring that all parties are committed to the success and stability of the Buona franchise at that location. Franchisees should carefully review the lease addendum to understand the full extent of Buona's rights and their own obligations under the lease.