If a Buona franchisee loses possession of the Franchised Business, what is the franchisee required to do?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) Franchisee maintains possession of the premises of the Approved Location, or if Franchisee is unable to maintain possession of the Approved Location, secures an approved substitute and agrees to expeditiously develop the substitute premises in compliance with the then current standards and specification for the development of Buona Businesses;
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee is unable to maintain possession of the approved location, they must secure an approved substitute location. Furthermore, the franchisee is required to expeditiously develop the substitute premises in compliance with the then-current standards and specifications for the development of Buona Businesses.
This requirement ensures that even if a franchisee loses their original location, they are obligated to continue operating a Buona franchise at a new, approved site. This protects Buona's brand and ensures continued service in the market. The franchisee bears the responsibility of finding and developing the new location according to Buona's standards.
It is important for prospective franchisees to understand the implications of this obligation. Losing a location could be costly, as the franchisee would need to invest in developing a new site. Franchisees should carefully consider their ability to secure and develop a new location if they were to lose possession of their original site. This requirement underscores the importance of maintaining a good relationship with the landlord and ensuring the lease terms are favorable to the franchisee.