Does Buona Franchisor have the right to purchase the franchisee's improvements, furniture, and equipment after termination or expiration of the Buona franchise agreement?

According to Buona's 2025 Franchise Disclosure Document, in the event that Buona exercises its option to purchase assets of the franchisee (referred to as Lessee in the context of the lease), the lessor (landlord) must allow Buona to remove all the assets being purchased. This indicates that Buona does have the option to purchase the franchisee's assets under certain conditions.

This clause is important for prospective Buona franchisees as it clarifies the franchisor's rights regarding the purchase of assets upon termination or expiration of the franchise agreement. It ensures that if Buona chooses to buy the franchisee's assets, the landlord will cooperate in allowing the removal of those assets from the premises. This could impact the franchisee's ability to sell those assets to another buyer if Buona exercises its right of first refusal.

It is important to note that the FDD excerpt specifies that this right is connected to the lease agreement and the lessor's cooperation. The specific conditions under which Buona might exercise this option and the valuation methods for the assets are not detailed in this excerpt, so a prospective franchisee should seek further clarification from Buona regarding these aspects.