What is the name of the exhibit that outlines the Buona development schedule and development fee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
iability Franchisor A Dated: Dated: ADA 2025 FRANCHISOR INITIALS - 15 - DEVELOPER INITIALS
EXHIBIT A TO THE AREA DEVELOPMENT AGREEMENT
DESCRIPTION OF DEVELOPMENT AREA
[Insert description]
FRANCHISOR: CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING, LLC An Illinois limited liability Franchisor DEVELOPER: [ENTITY NAME] A Dated: Dated: ADA 2025 - 16 - FRANCHISOR INITIALS______ ______DEVELOPER INITIALS
EXHIBIT B TO THE AREA DEVELOPMENT AGREEMENT
DEVELOPMENT SCHEDULE
Developer is obligated under this Agreement to develop, open and operate a minimum of three (3) Buona restaurants. On or before the date set forth below, Developer is obligated by this Agreement to have signed Franchise Agreements, signed leases or purchase agreements, and commenced operating Buona restaurants:
Last date for Execution of Franchise Agreement Last date for Execution of Lease or Date for Purchase Agreement for Commencement Franchisor Approved Site of Operations Upon the execution of this Agreement FRANCHISOR: CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING LLC DEVELOPER: [ENTITY NAME] An Illinois limited liability Franchisor A Dated: Dated: FRANCHISOR INITIALS______ ______DEVELOPER INITIALS
ADA 2025 - 17 -
EXHIBIT C TO THE AREA DEVELOPMENT AGREEMENT
| THIS GUARANTY AND ASSUMPTION OF DEVELOPER'S OBLIGATIONS ("Guaranty") is made as of, 20, in consideration of, and as an inducement to, the execution of the Franchise Agreement by Chicago's Original Italian Beef Franchising LLC, an Illinois limited liability company ("Franchisor").
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Exhibit B to the Area Development Agreement outlines the development schedule. This exhibit details the developer's obligations to develop, open, and operate a minimum of three Buona restaurants. It specifies the deadlines for signing Franchise Agreements, leases, or purchase agreements, and commencing operations at franchisor-approved sites.
Additionally, Exhibit B outlines the development fee structure. Upon executing the Development Agreement, the developer must pay a Development Fee calculated by multiplying $16,000 by the number of additional Buona Restaurants to be developed beyond the first one. This fee serves as consideration for the Development Agreement and is fully earned by Buona upon execution, making it non-refundable.
However, Buona will credit $16,000 of the Development Fee against the Initial Franchise Fee for each additional Franchise Agreement executed according to the Development Agreement. Compliance with the Development Schedule is crucial; failure to comply may result in paying the then-current initial franchise fee if it exceeds $32,000 when signing additional franchise agreements.