What must be paid in full before a Buona franchise can be transferred?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Franchisee shall not be in default under this Agreement or any agreement with Franchisor and its Affiliates at the time Franchisee requests the right to transfer the franchise or at the time the Franchised Business is to actually be transferred.
All accounts payable and other monetary obligations to Franchisor and its Affiliates shall be paid in full;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, before a franchise can be transferred, all accounts payable and other monetary obligations to Buona and its affiliates must be paid in full. This requirement ensures that the franchisor receives all outstanding payments before ownership of the franchise changes hands.
This condition protects Buona's financial interests and maintains the financial integrity of the franchise system. It is a standard practice in franchising to ensure that franchisees are in good financial standing before allowing them to transfer their business to another party.
For a prospective Buona franchisee, this means that if they decide to sell their franchise, they must settle all outstanding debts with Buona, including any unpaid royalties, marketing fund contributions, or other fees. Failure to do so will prevent the transfer from being approved. This requirement is in place both when the franchisee requests the right to transfer the franchise and at the time the franchised business is actually transferred.