How many hours of ceasing operation constitutes grounds for termination of the Buona franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisee at any time ceases to operate the Franchised Business for fortyeight (48) hours or more or otherwise abandons the Franchised Business, or loses the right to possession of the premises of the Franchised Business, or causes its lease for the premises of the Franchised Business to be terminated, or otherwise forfeits the right to do or transact business in the jurisdiction where the Franchised Business is located.
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, ceasing operation of the franchised business for 48 hours or more can be grounds for termination of the franchise agreement. This also applies if the franchisee abandons the business, loses possession of the premises, causes the lease to be terminated, or forfeits the right to transact business in the relevant jurisdiction.
However, there is an exception: 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 to apply for approval to relocate or reconstruct. Approval cannot be unreasonably withheld, provided the franchisee is not in default and may be conditioned upon the payment of an agreed minimum royalty during the period of non-operation.
This clause protects Buona by ensuring franchisees maintain continuous operation, but it also provides a grace period for circumstances beyond the franchisee's control, such as natural disasters, allowing them time to recover and potentially relocate or rebuild their business while maintaining a relationship with the franchisor.