What is included in Exhibit B of the Buona franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT B TO THE AREA DEVELOPMENT AGREEMENT
DEVELOPMENT SCHEDULE
Developer is obligated under this Agreement to develop, open and operate a minimum of three (3) Buona restaurants. On or before the date set forth below, Developer is obligated by this Agreement to have signed Franchise Agreements, signed leases or purchase agreements, and commenced operating Buona restaurants:
Last date for Execution of Franchise Agreement Last date for Execution of Lease or Date for Purchase Agreement for Commencement Franchisor Approved Site of Operations Upon the execution of this Agreement FRANCHISOR: CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING LLC DEVELOPER: [ENTITY NAME] An Illinois limited liability Franchisor A Dated: Dated: FRANCHISOR INITIALS
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Exhibit B to the Area Development Agreement contains the development schedule. The developer is obligated to develop, open, and operate a minimum of three Buona restaurants. The exhibit specifies the last date for the execution of the Franchise Agreement, the last date for the execution of the lease or date for the purchase agreement for the Franchisor-approved site, and the commencement of operations.
This exhibit is crucial for prospective franchisees entering into an Area Development Agreement with Buona. It clearly outlines the timeline and obligations for developing multiple Buona restaurants. Failing to meet these deadlines could result in a breach of the agreement, potentially leading to the loss of development rights.
Typically, franchise agreements with development schedules include specific milestones and deadlines to ensure timely expansion. The inclusion of dates for signing franchise agreements, securing locations, and commencing operations provides a structured framework for the developer. This level of detail helps both Buona and the developer track progress and address any potential delays proactively.
Prospective developers should carefully review Exhibit B to fully understand the required development pace and ensure they have the resources and capabilities to meet the specified deadlines. It is also important to understand the consequences of failing to meet the development schedule and to negotiate terms that are realistic and achievable.