If Buona elects to acquire the Franchised Business, can they substitute cash for non-cash consideration in the purchase price?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
15.9.1 Franchisee grants to Franchisor the right, but not the obligation, to acquire the Franchised Business on the same terms and conditions specified in a bona fide written offer from a qualified third party. However, Franchisor may substitute the cash equivalent for any portion of the purchase price to be paid by non-cash consideration. Franchisor may purchase the interest for itself or
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the right to acquire a franchised business. Specifically, Buona has the right of first refusal, meaning they can match the terms of a bona fide offer from a third party to purchase the franchise.
Importantly, Buona can choose to pay the equivalent cash value for any portion of the purchase price that would otherwise be paid with non-cash assets. This provides Buona with flexibility in how they structure the purchase.
For a prospective franchisee, this means that if you decide to sell your Buona franchise, Buona has the first opportunity to buy it. Furthermore, if the offer you receive from a third party includes non-cash considerations, Buona can pay you the cash equivalent instead, which might be simpler and more desirable for you as the seller.