When does the Buona Guaranty terminate?

According to Buona's 2025 Franchise Disclosure Document, the Development Agreement's term expires when you sign a Franchise Agreement for the last franchise to be developed under the Development Agreement. The Development Agreement’s term isn't related to or affected by the term of any franchise agreement, lease, or other agreement related to any Buona Restaurant. The agreement does not contain or create any right to renewal. All rights in the Development Area expire upon the expiration of the Development Agreement.

This means that as a Buona developer, your rights to develop within a specific area end once you've signed the franchise agreement for the final restaurant outlined in your development schedule. It's important to note that the lifespan of the Development Agreement is separate from the individual franchise agreements you sign for each Buona restaurant. Even if a restaurant's franchise agreement is still active, your broader development rights are not automatically extended.

For a prospective Buona franchisee, this highlights the importance of understanding the development schedule and planning for the long term. If you wish to continue expanding beyond the initial development agreement, you will need to negotiate a new agreement or exercise your right of first refusal, if available, for any new locations Buona plans to develop in your area. This also underscores the need to maintain full compliance with the Development Agreement to retain the right of first refusal after completing the development schedule.