If a Buona franchisee proposes to transfer their interest, what information must they provide to Buona in writing?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall notify Franchisor in writing of the terms and conditions of each proposed transfer, including the interest proposed to be transferred, the purchase price or other consideration to be paid, any financing terms being extended by Franchisee, the date of the proposed transfer and all other pertinent provisions of the proposed sale. In addition, a copy of the contract, agreement, memorandum of sale, deposit receipt, or letter of intent shall also be forwarded to Franchisor as soon as it is received by Franchisee. Following its receipt of all pertinent data and documents concerning the proposed transfer, including any additional data concerning the transaction requested by Franchisor from Franchisee, Franchisor shall have thirty (30) days within which to advise Franchisee in writing of Franchisor's election to acquire the interest proposed to be transferred on the same terms and conditions agreed to by the prospective transferee. Should Franchisor elect to acquire the interest proposed to be transferred pursuant to its right of first refusal, Franchisee and Franchisor shall cooperate to consummate the transfer. The date for the completion of the transfer may be extended at Franchisor's option for up to thirty (30) days beyond the date originally indicated for the completion of the transfer in order to allow the completion of the transaction in a manner more convenient to Franchisor. The above right of first refusal provisions shall apply to any sale, pledge, assignment, trade or transfer of any ownership interests in the Entity.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must provide specific details in writing to Buona when proposing to transfer their interest. This includes the terms and conditions of the proposed transfer, such as the interest being transferred, the purchase price or other consideration, any financing terms extended by the franchisee, the proposed transfer date, and all other relevant provisions of the proposed sale.
In addition to outlining the terms of the transfer, the franchisee must also provide Buona with a copy of the contract, agreement, memorandum of sale, deposit receipt, or letter of intent as soon as it is received. This ensures Buona has access to all documentation related to the proposed transfer. After receiving all necessary data and documents, Buona has 30 days to decide whether to acquire the interest on the same terms and conditions agreed to by the prospective transferee.
This right of first refusal extends to any sale, pledge, assignment, trade, or transfer of ownership interests in the franchisee's entity. If there are any changes to the terms and conditions of the proposed transfer after the initial notice, the franchisee must inform Buona in writing, which then has an additional 30 days to decide whether to purchase the interest under the revised terms. This process ensures Buona maintains control over who becomes a franchisee and protects its interests in the franchise system.