How long does a Buona franchisee have to apply for approval to relocate or reconstruct the premises after damage?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
However, if, through no fault of Franchisee, the premises are damaged or destroyed by an event not within the control of Franchisee such that repairs or reconstruction cannot be completed within six (6) months thereafter, then Franchisee shall have thirty (30) days after such event in which to apply for Franchisor's approval to relocate the Franchised Business and/or reconstruct the premises, which approval shall not be unreasonably withheld, provided Franchisee is not then in default under this Agreement or any other agreement between Franchisee and Franchisor or any of its Affiliates, but may be conditioned upon the payment of an agreed minimum royalty to Franchisor during the period in which the Franchised Business is not in operation;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if the premises are damaged or destroyed through no fault of the franchisee, and repairs or reconstruction cannot be completed within six months, the franchisee has 30 days after the event to apply for Buona's approval to relocate or reconstruct the franchised business.
Buona's approval for relocation or reconstruction will not be unreasonably withheld, assuming the franchisee is not in default under the Franchise Agreement or any other agreement with Buona or its affiliates. However, Buona may condition its approval upon the franchisee paying an agreed minimum royalty during the period the business is not in operation.
This stipulation protects the franchisee from immediate termination of the agreement due to unforeseen circumstances while also allowing Buona to maintain some revenue stream during the downtime. It is important for prospective franchisees to understand the conditions under which they can relocate or reconstruct and the potential financial obligations during that period.