What happens to the provisions of the Buona franchise agreement upon termination or expiration?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
XVII. EFFECT OF TERMINATION OR EXPIRATION
- 17.1 Post-Termination Obligations. Upon termination or expiration of this Agreement, all rights granted to Franchisee under this Agreement will immediately terminate, Franchisee shall cease to be a licensed franchisee of Franchisor, and:
- (a) Franchisee shall immediately cease to operate the Franchised Business as an Franchised Business, and shall not thereafter, directly or indirectly, represent to the public that the restaurant is or was a Franchised Business;
- (b) Franchisee shall immediately and permanently cease to use, by advertising or in any manner whatsoever, any menus, recipes, confidential formulae, equipment, methods, procedures, techniques associated with the System, the Marks, and Franchisor's other trade names, trademarks and service marks associated with the System. In particular, and without limitation, Franchisee shall cease to use all signs, menus, advertising and promotional materials, stationery, forms, packaging, containers and any other articles which display the Marks;
- (c) In the event Franchisee continues to operate or subsequently begins to operate a restaurant or other business, Franchisee shall not use any reproduction, counterfeit, copy, or colorable imitation of the Marks in conjunction with such other business which is likely to cause confusion or mistake or to deceive, and further agrees to remove all unique markings, colors, décor, Marks and other features ("Trade Dress") that identify the Franchised Business as a former Franchised Business, and otherwise take all necessary steps to disassociate itself from the System and Franchisor, including but not limited to, the removal of signs and all Trade Dress from the premises of the Franchised
Business and destruction of printed materials.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, all rights granted to the franchisee immediately terminate, and the franchisee must cease operating as a Buona franchise. The franchisee is prohibited from representing to the public that the restaurant is or was a Buona franchise.
Furthermore, the franchisee must immediately and permanently stop using any menus, recipes, confidential formulas, equipment, methods, procedures, techniques, trade names, trademarks, and service marks associated with the Buona system. This includes refraining from using any signs, menus, advertising and promotional materials, stationery, forms, packaging, containers, or any other articles displaying Buona's marks.
If the franchisee continues to operate a restaurant or other business after termination or expiration, they cannot use any reproduction, counterfeit, copy, or imitation of Buona's marks that could cause confusion or deception. The franchisee must remove all unique markings, colors, décor, and other features that identify the business as a former Buona franchise. They must also take all necessary steps to disassociate themselves from the Buona system, including removing signs and trade dress from the premises and destroying printed materials. These post-termination obligations are designed to protect Buona's brand and prevent unfair competition from former franchisees.