What happens if a Buona franchisee is indicted for a felony?

According to Buona's 2025 Franchise Disclosure Document, if a franchisee, or any of its shareholders, members, managers, partners, officers, directors or guarantors, is indicted for a felony, Buona has grounds to terminate the franchise agreement. This also applies if the franchisee is convicted of or pleads guilty to a felony, a crime involving moral turpitude, or any other crime or offense that Buona believes is reasonably likely to have an adverse effect on the System, the Marks, or the goodwill associated with the System and the Marks, or Buona's interest in the System or the Marks.

This clause in the franchise agreement protects Buona's brand and reputation. An indictment, conviction, or guilty plea to certain crimes by a franchisee or related parties could damage the public perception of the brand. The determination of whether a crime is likely to have an adverse effect on the Buona system is at the discretion of the franchisor.

For a prospective franchisee, this means that their personal conduct and the conduct of those affiliated with their business (shareholders, managers, etc.) could impact their franchise agreement. It is important to maintain a clean legal record and ensure that all business partners do as well. Failure to do so could result in the termination of the franchise and loss of the investment.