What happens if a Buona franchisee ceases to operate the franchised business for 48 hours or more?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
without affording Franchisee any opportunity to cure the same effective upon receipt of notice from Franchisor to Franchisee, upon occurrence of any of the following events:
- (b) Franchisee at any time ceases to operate the Franchised Business for fortyeight (48) hours or more or otherwise abandons the Franchised Business, or loses the right to possession of the premises of the Franchised Business, or causes its lease for the premises of the Franchised Business to be terminated, or otherwise forfeits the right to do or transact business in the jurisdiction where the Franchised Business is located.
However, if, through no fault of Franchisee, the premises are damaged or destroyed by an event not within the control of Franchisee such that repairs or reconstruction cannot be completed within six (6) months thereafter, then Franchisee shall have thirty (30) days after such event in which to apply for Franchisor's approval to relocate the Franchised Business and/or reconstruct the premises, which approval shall not be unreasonably withheld, provided Franchisee is not then in default under this Agreement or any other agreement between Franchisee and Franchisor or any of its Affiliates, but may be conditioned upon the payment of an agreed minimum royalty to Franchisor during the period in which the Franchised Business is not in operation;
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee ceases to operate the franchised business for 48 hours or more, Buona can terminate the franchise agreement without providing an opportunity to cure the issue. This becomes effective immediately upon the franchisee receiving notice from Buona.
This clause protects Buona from franchisees who may abandon their business, allowing Buona to quickly regain control and find a new operator. It also applies if the franchisee loses the right to possess the premises, has their lease terminated, or forfeits the right to conduct business in the relevant jurisdiction.
However, there is an exception: if the premises are damaged or destroyed through no fault of the franchisee, making repairs or reconstruction impossible within six months, the franchisee has 30 days to apply for Buona's approval to relocate or reconstruct the business. This approval cannot be unreasonably withheld, provided the franchisee isn't in default of any agreements with Buona and may be conditional upon the payment of an agreed minimum royalty to Buona during the period the business is not operating.