What is the obligation of the Developer regarding signing leases or purchase agreements for approved sites 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 outlines the Development Schedule, which details the developer's obligations. The developer must sign franchise agreements, leases, or purchase agreements for franchisor-approved sites. These actions must occur on or before the dates specified in the Development Schedule. The developer is obligated to develop, open, and operate a minimum of three Buona restaurants under the Area Development Agreement.
Specifically, the developer must provide written notice of their intention to begin development of the next Buona restaurant at least 30 days before executing the Franchise Agreement. They must also submit a description of the proposed site, along with a letter of intent or other evidence confirming favorable prospects for obtaining the site. The developer is required to execute the then-current form of the Franchise Agreement for the applicable restaurant at the approved site and comply with its terms.
In addition to the franchise agreement, the developer must execute a lease, in a form approved by Buona, or a purchase agreement for the proposed site. Compliance with the Development Schedule is crucial, as the terms and conditions of the Area Development Agreement are contingent upon it. The developer must continuously maintain in operation at least the number of Buona restaurants set forth in the Development Schedule after the opening of each restaurant. The owners of the developer must also maintain majority control over the entity that owns each Buona franchise developed under the agreement.