For Buona, is an incurable default under any agreement between the franchisee and franchisor grounds for termination of all agreements?

According to Buona's 2025 Franchise Disclosure Document, an incurable or uncured default under the Franchise Agreement or any other agreement between the franchisee (or their affiliates) and Buona (or its affiliates) can lead to the termination of the Franchise Agreement and/or all agreements between the franchisee (or their affiliates) and Buona (or its affiliates) without additional notice or opportunity to cure the default. This is a significant point for prospective franchisees to consider.

This clause means that if a franchisee fails to meet the obligations of any agreement with Buona and the default cannot be remedied, Buona has the right to terminate all agreements. This could include not only the Franchise Agreement but also any related agreements such as loan agreements, leases, or development agreements. The FDD emphasizes that no additional notice or opportunity to cure is required in such cases, which could lead to a swift termination of the franchise relationship.

For a prospective Buona franchisee, this highlights the importance of understanding and complying with all agreements with Buona and its affiliates. It also underscores the need to carefully assess one's financial and operational capabilities to ensure that all obligations can be met. Franchisees should seek legal counsel to fully understand the implications of this cross-default and cross-termination provision and to evaluate the risks associated with entering into multiple agreements with Buona.