What is the minimum number of Franchised Restaurants a developer must commit to develop, own, and operate to be granted development rights with Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, you have expressed a desire to and have applied for the right to develop, own and operate a total of three (3) or more Franchised Restaurants and Franchisor has approved your application in reliance upon all of the representations made therein and is willing to grant to Developer the right to develop multiple Franchised Restaurants within a certain agreed upon territory on the terms and conditions set forth herein.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a developer must commit to developing, owning, and operating a minimum of three Franchised Restaurants to be granted development rights. This is based on the statement that the franchisor approved the developer's application "to develop, own and operate a total of three (3) or more Franchised Restaurants."
This commitment is a prerequisite for Buona granting the developer the right to establish and operate franchises within a defined geographic area, referred to as the "Development Area." The grant of these rights is subject to the terms and conditions outlined in the Development Agreement.
Prospective developers should understand that this initial commitment to develop at least three restaurants is a significant investment and operational undertaking. Failing to meet the development schedule outlined in Exhibit B of the Development Agreement could have legal and financial repercussions. It is important to carefully review the Development Agreement and its exhibits to fully understand the obligations and timelines involved in developing multiple Buona franchises.