What ownership requirement must be maintained for each Buona franchise developed under the Development Agreement?

According to Buona's 2025 Franchise Disclosure Document, if you enter into a Development Agreement with Buona, the owners must maintain majority control over the entity that owns each Buona franchise developed under the agreement. This means that the individuals or entities initially designated as the "Owners" in the Development Agreement must collectively hold more than 50% of the ownership and decision-making power for each individual Buona restaurant that is opened as part of the development schedule.

This requirement ensures that the original developers maintain a vested interest and active role in the operation of each Buona franchise. It prevents developers from simply setting up the franchise and then relinquishing control to other parties without Buona's oversight. This control helps maintain consistency and adherence to Buona's standards across all locations developed under the agreement.

For a prospective franchisee, this means that if you plan to develop multiple Buona locations, you and your initially designated owners must be prepared to retain majority ownership in each of those locations throughout the term of the franchise agreement. Failure to maintain this majority control could be a breach of the Development Agreement and the individual Franchise Agreements, potentially leading to termination of the agreement.