What is the minimum number of Buona Businesses a Developer agrees to establish and operate?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
We also allow certain franchisees who meet our criteria to become a Developer. A Developer agrees to establish and operate themselves a minimum of 3 Buona Businesses in a specified Development Area over an agreed upon period of time. The Area Development Agreement is attached to this Franchise Disclosure Document as Exhibit C. The Developer will sign a Franchise Agreement for the first Buona Business at the time the Area Development Agreement is signed. For each future franchise to be developed, the Developer will sign the then current form of Franchise Agreement that may have different terms than the Franchise Agreement contained in this Franchise Disclosure Document.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a Developer agrees to establish and operate a minimum of 3 Buona Businesses in a specified Development Area over an agreed-upon period. This commitment is formalized through an Area Development Agreement, which is included as an exhibit in the FDD.
This requirement has significant implications for potential Buona franchisees considering becoming Developers. It means they must be prepared to invest in and manage at least three locations, rather than just a single franchise. This necessitates a higher level of capital, operational expertise, and management capacity. The 'specified Development Area' and 'agreed upon period of time' are key factors that would influence the scale and pace of the Developer's expansion.
Furthermore, the FDD states that the Developer will sign a Franchise Agreement for the first Buona Business when the Area Development Agreement is signed. For each subsequent franchise, the Developer will sign the then-current form of the Franchise Agreement, which may have different terms than the original agreement. This means that the terms and conditions of operating the additional franchises could change over time, introducing an element of uncertainty and potential risk for the Developer.
Prospective Developers should carefully review the Area Development Agreement (Exhibit C) and any Dual Brand Area Development Agreement (Exhibit C-1) to fully understand their obligations, the defined development area, the timeframe for opening the restaurants, and the potential for changes in the Franchise Agreement terms for future locations. They should also inquire about the criteria for becoming a Developer and the support Buona provides to Developers in managing multiple locations.