What is the length of each renewal term for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
2.2 Renewal Options and Condition. Franchisee shall have the option to renew its right to operate the Franchised Business for three (3) additional terms of five (5) years each, provided that Franchisor does not exercise its rights in accordance with Section 2.3 below, if and only if each and every one of the following conditions has been satisfied:
(a) Franchisee gives Franchisor written notice of its election to renew not less than six (6) months nor more than twelve (12) months prior to the expiration of the Term;
(b) At least thirty (30) days prior to the expiration of the Term, Franchisee executes Franchisor's then-current standard form of franchise agreement, which may contain new or significantly different terms, including but not limited to a higher royalty fee and a higher advertising contribution and different territorial protections than contained in this Agreement;
(c) Franchisee executes a general release in the form prescribed by Franchisor, of any and all claims Franchisee may have against Franchisor and its Affiliates, and their respective shareholders, officers, directors, members, managers, employees and agents, predecessors, successors and assigns;
(d) Franchisee is not then in default of any provisions of this Agreement, or any other agreement between Franchisee or its affiliates and Franchisor, or its Affiliate;
(e) Franchisee has fully and faithfully performed all of Franchisee's obligations under this Agreement throughout the Term;
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for three additional terms, each lasting five years. This assumes that Buona does not exercise its rights in accordance with Section 2.3 of the franchise agreement.
To be eligible for renewal, the franchisee must provide Buona with written notice of their intent to renew at least six months, but no more than twelve months, before the current term expires. Additionally, at least thirty days before the expiration of the term, the franchisee must execute Buona's then-current standard franchise agreement, which may include new or significantly different terms such as higher royalty fees, increased advertising contributions, and altered territorial protections.
Further conditions for renewal include the franchisee executing a general release of any claims against Buona and its affiliates, and the franchisee not being in default of any provisions of the franchise agreement or any other agreement with Buona or its affiliates. The franchisee must also have fully and faithfully performed all obligations under the agreement throughout the term. Meeting all these conditions ensures the franchisee can potentially extend their business operations with Buona for the additional terms.