What happens if a Buona franchisee abandons the operation of the Franchised Business without the Secured Party's written consent?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) if Debtor abandons, surrenders or transfers control of the operation of the Franchised Business without Secured Party's prior written consent; or
- (e) if Debtor is a corporation, limited liability company, partnership, joint venture or other legal entity, any action is taken which purports to merge, consolidate, dissolve or liquidate Debtor without the prior written consent of Secured Party.
- 3.2. Remedies. Upon the occurrence of an Event of Default, all amounts payable to Secured Party shall become immediately due and payable and Secured Party shall have all the rights and remedies of a secured party under the Uniform Commercial Code as in effect in the state or states in which the Collateral may be located, including, but not limited to, the right to enter upon the Franchised Restaurant peaceably and remove all Collateral. Secured Party shall give Debtor reasonable notice of the time and place of any public or private sale or other intended disposition of all or any particular Collateral, as the case may be. Debtor agrees that the requirement of reasonable notice shall be met if notice is mailed to Debtor at its address first above written not less than five (5) business days prior to the sale or other disposition. Expenses of retaking, holding, preparing for sale, selling or the like, shall include, without limitation, Secured Party's reasonable attorneys' fees and other legal expenses. Secured Party's rights and remedies, whether pursuant hereto or pursuant to the Illinois Uniform Commercial Code or any other statute or rule of law conferring rights similar to those conferred by the Illinois Uniform Commercial Code, shall be cumulative and not alternative.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee abandons, surrenders, or transfers control of their franchised business without the secured party's prior written consent, it constitutes an event of default.
Upon such an event of default, all amounts payable to the secured party become immediately due. The secured party, which is Buona, has all the rights and remedies of a secured party under the Uniform Commercial Code. This includes the right to enter the Buona Restaurant peaceably and remove all collateral.
Buona must provide the franchisee with reasonable notice of the time and place of any public or private sale or other intended disposition of the collateral. The agreement specifies that a notice mailed to the franchisee's address at least five business days prior to the sale or disposition is considered reasonable notice. The franchisee is responsible for expenses related to retaking, holding, and preparing the collateral for sale, including Buona's reasonable attorneys' fees and other legal expenses. Buona's rights and remedies are cumulative and not alternative, as conferred by the Illinois Uniform Commercial Code or any other similar statute or rule of law.