What is the Lessor's obligation to Buona upon the expiration or termination of either the Lease or the Franchise Agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) Upon the expiration or termination of either the Lease or the Franchise Agreement, Lessor will cooperate with and assist Franchisor in securing possession of the Premises and
if Franchisor does not elect to take an assignment of the Lessee's interest, Lessor will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability to Lessor, to remove all signs and all other items identifying the Premises as a Franchised Business and to make other modifications (such as repainting) as are reasonably necessary to protect the Franchisor's marks, system, and trade dress, and to distinguish the Premises from a Buona business. In the event Franchisor exercises its option to purchase assets of Lessee, Lessor shall permit Franchisor to remove all the assets being purchased by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, upon the expiration or termination of either the Lease or the Franchise Agreement, the Lessor is obligated to cooperate with and assist Buona in securing possession of the premises. This means the Lessor must work with Buona to ensure they can regain control of the physical location.
If Buona chooses not to take an assignment of the Lessee's interest, the Lessor must allow Buona to enter the premises without being considered a trespasser and without any liability to the Lessor. This access allows Buona to remove all signs and other items that identify the premises as a franchised business. Buona can also make other modifications, such as repainting, that are reasonably necessary to protect Buona's marks, system, and trade dress. The purpose is to clearly distinguish the premises from a Buona business.
Furthermore, if Buona exercises its option to purchase assets from the Lessee, the Lessor must permit Buona to remove all the assets being purchased. This ensures that Buona can take possession of the assets they have acquired from the franchisee. These stipulations are designed to protect Buona's brand and ensure a smooth transition when a franchise agreement or lease ends.