How long does a Buona franchisee have to apply for relocation approval after premises 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, a franchisee has 30 days to apply for relocation approval if the premises are damaged or destroyed through no fault of their own, and repairs or reconstruction cannot be completed within six months. This 30-day window begins after the event causing the damage.
This requirement is contingent on the franchisee not being in default under the Franchise Agreement or any other agreement with Buona or its affiliates. However, Buona's approval for relocation will not be unreasonably withheld. Buona may condition its approval upon the franchisee paying an agreed-upon minimum royalty during the period the business is not operating.
This clause protects the franchisee in situations beyond their control, such as natural disasters or accidental damage, while also ensuring Buona maintains some revenue stream during the downtime. It is important for prospective franchisees to understand these conditions and the potential financial implications of a temporary closure and relocation.