How much written notice does Buona require to terminate a month-to-month franchise continuation after the initial term, and what is the exception if local laws require a longer period?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.4 Continued Operation Following Expiration. Franchisee has no right to continue to operate the Franchised Business after the expiration of the initial term of this Agreement unless Franchisee is granted a renewal Franchise Agreement in accordance with this Section 2. If Franchisor permits Franchisee to continue to operate the Franchised Business after the expiration of the initial term of this Agreement but before the execution of a renewal Franchise Agreement as required by Section 2.2, then the temporary continuation of the Franchised Business will be on a month-to-month basis, and will be terminable at Franchisor's option by giving Franchisee written notice of termination at least thirty (30) days before the termination is effective. If the laws of the jurisdiction in which the Franchisee or the Franchised Business are located require a longer notice period, the thirty-day period will be deemed modified to be the shortest notice period required by the laws of such jurisdiction.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee is permitted to continue operating the franchised business after the initial term expires but before a renewal agreement is executed, this continuation will be on a month-to-month basis. Buona can terminate this temporary arrangement by providing the franchisee with at least thirty days' written notice.
However, there is an exception to this 30-day notice period. If the laws in the jurisdiction where the franchisee or the franchised business is located require a longer notice period for termination, then Buona will be required to provide the franchisee with that longer notice period instead. The FDD specifies that the 30-day period will be modified to meet the shortest notice period mandated by local laws.
This means that a prospective Buona franchisee needs to be aware of the specific termination notice requirements in their local jurisdiction. If local laws mandate a notice period longer than 30 days, that longer period will apply, potentially giving the franchisee more time to wind down operations or negotiate further with Buona.