What is the minimum notice period required by Buona before the proposed effective date of the transfer?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
15.9.2 If Franchisor does not elect to purchase the interest proposed to be transferred, Franchisee may complete the proposed transfer on the terms and conditions set forth in its notice to Franchisor subject to Franchisor's right to approve the proposed transferee and the terms and conditions set forth under Section 15.3 above. However, if there are any changes in the terms and conditions of the proposed transfer after Franchisee notifies Franchisor of the proposed transfer, including any changes in the terms and conditions occurring after Franchisor notifies Franchisee of its election not to purchase the interest pursuant to its right of first refusal, Franchisee must notify Franchisor of the changes in writing and Franchisor shall have an additional thirty (30) days within which to elect to purchase the interest proposed to be transferred on the revised terms and conditions. If the proposed transfer is not completed for any reason after Franchisor elects not to purchase the interest being transferred, Franchisor's right of first refusal is reinstated as to any later proposed sales or transfers by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee intends to transfer their franchise, they must first notify Buona of the proposed transfer. Buona then has the right of first refusal to acquire the franchise on the same terms offered by a third party.
If Buona decides not to purchase the franchise, the franchisee can proceed with the transfer to the third party, provided the terms and conditions remain the same as initially presented to Buona. However, if any changes occur in the terms after Buona declines to purchase, the franchisee must inform Buona in writing of these changes.
Following notification of changes, Buona has an additional 30 days to decide whether to purchase the franchise under the revised terms. If the transfer is not completed after Buona declines, Buona's right of first refusal is reinstated for any future transfer attempts. This process ensures Buona maintains control over who becomes a franchisee and under what terms.