If a Buona franchisee is in default, can they transfer the franchise?

According to Buona's 2025 Franchise Disclosure Document, a franchisee's ability to transfer the franchise while in default is restricted. Specifically, a franchisee cannot transfer the franchise if they are in default of the Franchise Agreement or any other agreement with Buona or its affiliates.

This condition is outlined in Section 15.3(a), which states that the franchisee must not be in default at the time they request the right to transfer the franchise or when the franchised business is actually transferred. This requirement ensures that the franchisee fulfills all their obligations to Buona before transferring the business to a new owner. All accounts payable and other monetary obligations to Buona and its Affiliates must be paid in full.

This provision is typical in franchising, as franchisors want to ensure that new franchisees are financially stable and capable of meeting the brand's standards. By preventing the transfer of a franchise in default, Buona protects its brand and the interests of other franchisees within the system. A prospective Buona franchisee should be aware of these transfer conditions and maintain compliance with all agreements to retain the option of transferring their franchise in the future.