What is the obligation of the Developer regarding commencing operating Franchised Buona Restaurants, as per Exhibit B?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Exhibit B of the Area Development Agreement outlines the developer's obligations to develop, open, and operate a minimum of three Buona restaurants. The developer must sign Franchise Agreements, sign leases or purchase agreements, and commence operating Buona restaurants on or before the dates specified in the Development Schedule.
This schedule is crucial because it sets the timeline for the developer's expansion. Failing to meet these deadlines could result in penalties or termination of the agreement. The Development Schedule ensures that Buona can strategically expand its presence in the designated area, while also holding the developer accountable for their commitments.
Prospective developers should carefully review Exhibit B to understand the specific dates and requirements for each stage of development. They should also consider their ability to secure suitable locations, negotiate leases or purchase agreements, and complete the necessary steps to open and operate the restaurants within the given timeframe. Understanding these obligations is essential for a successful partnership with Buona and for maximizing the potential of the development area.