If Buona reduces the scope of a covenant, when does the change become effective for the franchisee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee understands and acknowledges that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set f
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 reduce the scope of any covenant set forth in Article XIV at its sole discretion. However, the FDD does not specify when such a change would become effective for the franchisee.
Typically, in franchise agreements, changes to covenants or other operational requirements are communicated to franchisees through formal written notice, updates to the operations manual, or during training sessions. The effective date of the change is usually specified in the communication to allow franchisees time to implement the modifications.
Since the FDD does not provide specific details on the effective date of covenant changes, it is important for a prospective Buona franchisee to seek clarification from the franchisor regarding the process and timing of such changes. Understanding how and when changes to covenants are implemented will help the franchisee to remain compliant and avoid potential breaches of the franchise agreement.