How many days does Buona have to advise a franchisee of their election to acquire the interest proposed to be transferred after receiving all pertinent data and documents?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Following its receipt of all pertinent data and documents concerning the proposed transfer, including any additional data concerning the transaction requested by Franchisor from Franchisee, Franchisor shall have thirty (30) days within which to advise Franchisee in writing of Franchisor's election to acquire the interest proposed to be transferred on the same terms and conditions agreed to by the prospective transferee. Should Franchisor elect to acquire the interest proposed to be transferred pursuant to its right of first refusal, Franchisee and Franchisor shall cooperate to consummate the transfer. The date for the completion of the transfer may be extended at Franchisor's option for up to thirty (30) days beyond the date originally indicated for the completion of the transfer in order to allow the completion of the transaction in a manner more convenient to Franchisor. The above right of first refusal provisions shall apply to any sale, pledge, assignment, trade or transfer of any ownership interests in the Entity.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee proposes to transfer their interest in the franchise, Buona has 30 days to advise the franchisee of its decision to acquire the interest. This 30-day period begins after Buona receives all the necessary data and documents concerning the proposed transfer, including any additional information Buona requests from the franchisee.
This right of first refusal allows Buona to maintain control over who becomes a franchisee and ensures that any new franchisee meets their standards. If Buona decides to exercise its right of first refusal, the franchisee and Buona are required to cooperate to complete the transfer.
Buona also has the option to extend the completion date of the transfer by up to 30 days beyond the originally scheduled date. This extension provides Buona with additional time to finalize the transaction in a manner that is more convenient for them. These provisions apply to any sale, pledge, assignment, trade, or transfer of ownership interests in the franchise entity.