How many additional terms can a Buona franchisee renew their right to operate the Franchised Business for?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
se Agreement is signed. Franchisee agrees and shall be obligated to operate the Franchised Business and perform under the terms of this Agreement for the Term, except as
otherwise noted below.
- 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 dual brand 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;
- (f) Franchisee has paid or otherwise fully satisfied all monetary obligations owed by Franchisee to Franchisor and its Affiliates and to designated suppliers and any indebtedness of Franchisee that is guaranteed by Franchisor, and Franchisee has timely paid or otherwise satisfied these obligations throughout the Term;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee has the option to renew their right to operate the Franchised Business for three additional terms. Each of these renewal terms is for a period of five years. However, this renewal is contingent upon Buona not exercising its rights in accordance with Section 2.3 of the agreement and only if all specified conditions are met.
To be eligible for renewal, the franchisee must provide Buona with written notice of their election to renew not less than six months, nor more than twelve months, prior to the expiration of the current term. Additionally, the franchisee and its managers must comply with Buona's then-current training requirements and attend any refresher training classes that Buona deems necessary.
Further conditions for renewal include maintaining possession of the premises of the Approved Location. If maintaining possession is not possible, the franchisee must secure an approved substitute and agree to develop the substitute premises expeditiously, adhering to the current standards and specifications for Franchised Businesses. The franchisee must also pay Buona a renewal fee of $7,500.00 at least thirty days before signing the renewal Franchise Agreement.
Failure to comply with any of these renewal conditions will result in the franchisee losing the right to renew the agreement upon its expiration. If Buona permits the franchisee to continue operating the Franchised Business after the initial term expires but before a renewal Franchise Agreement is executed, the continuation will be on a month-to-month basis and can be terminated by Buona with at least thirty days' written notice, unless local laws require a longer notice period.