What is the obligation of the Developer regarding signing Franchise Agreements for Buona restaurants, as per Exhibit B?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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 and the developer's obligations. The developer must develop, open, and operate a minimum of three Buona restaurants. The developer is obligated to have signed Franchise Agreements, signed leases or purchase agreements, and commenced operating Buona restaurants on or before the dates specified in the Development Schedule.
This schedule includes the last date for the execution of the Franchise Agreement, the last date for the execution of the lease or date for the purchase agreement, and the date for commencement of operations at the Franchisor-approved site. The agreement is effective upon execution by both the Franchisor, Chicago's Original Italian Beef Franchising LLC, and the Developer, with their respective dates and initials.
In practical terms, this means a prospective Buona developer must adhere to a strict timeline for securing locations and signing franchise agreements to maintain their development rights. Failure to meet these deadlines could result in the loss of development rights or other penalties as outlined in the Area Development Agreement. The developer should carefully review Exhibit B to understand the specific dates and requirements for each stage of development to ensure compliance and avoid potential breaches of the agreement.