What happens if a final judgment against a Buona developer's business assets remains unsatisfied of record for thirty (30) days or longer?

According to Buona's 2025 Franchise Disclosure Document, if a final judgment against a developer's business assets remains unsatisfied of record for thirty days or longer, the developer will be in default under the Development Agreement. This default leads to an automatic termination of all rights granted to the developer under the agreement, without any prior notice or opportunity to cure the default, unless a supersedeas bond is filed.

This provision protects Buona by ensuring that its developers maintain financial stability and meet their obligations. An unsatisfied judgment suggests financial distress, which could negatively impact the developer's ability to fulfill their obligations under the Development Agreement, such as opening restaurants according to the development schedule and maintaining brand standards. The automatic termination clause allows Buona to quickly sever ties with a financially unstable developer and find a more reliable partner.

For a prospective Buona developer, this clause highlights the importance of maintaining sound financial management and promptly addressing any legal judgments. Securing a supersedeas bond, which essentially guarantees payment of the judgment if the appeal is unsuccessful, is a way to prevent automatic termination while contesting the judgment. This requirement underscores the significant financial risks associated with area development agreements, where developers commit to opening multiple locations and must have the resources to handle potential liabilities.