What pre-opening procedures must a Buona franchisee complete before the 'Pre-Opening Inspection'?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not commence operation of the Franchised Business until: (1) the Franchisee entity has been established in accordance with Section 6.1 herein; (2) the premises of the Franchised Business has been developed in accordance with Section 6.2 herein; (3) Franchisee's Operating Owner and required managers have successfully completed the initial training program, Franchisee has hired the necessary staff of employees, and Franchisee has initiated a training program for its employees; (4) Franchisee has obtained all required certifications and license for operating the Franchised Business; (5) Franchisee has furnished Franchisor with copies of all insurance policies required by Article XII of this Agreement, and (6) Franchisee requests and obtains Franchisor's written consent to open for business.
Franchisee must have met the foregoing requirements and opened the Franchised Business within fifteen (15) months of Franchisor's written approval of the site for the Franchised Business.
Franchisor has the unilateral right (but not the obligation) to terminate the Agreement upon delivery of notice to Franchisee if it fails to open the Franchised Business with Franchisor's approval within the applicable time periods above.
If extenuating circumstances beyond Franchisee's control delay the opening of the Franchised Business and Franchisee has been making reasonable efforts to open the Franchised Business, Franchisor may (in its sole discretion) agree to extend the date for opening for an additional reasonable amount of time
determined by Franchisor based on the circumstances.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, before the 'Pre-Opening Inspection', a franchisee must fulfill several requirements to get consent to open their franchised business. These include establishing the franchisee entity according to specific guidelines, developing the business premises as outlined in Section 6.2 of the agreement, and ensuring that the Operating Owner and required managers successfully complete the initial training program.
Additionally, the franchisee needs to hire the necessary staff and initiate a training program for these employees. Obtaining all required certifications and licenses for operating the franchised business is also mandatory. Furthermore, the franchisee must provide Buona with copies of all insurance policies as required by Article XII of the Franchise Agreement.
Finally, the franchisee must formally request and obtain written consent from Buona to open the business. Meeting all these requirements and opening the franchised business must occur within fifteen months of Buona's written approval of the site. Failure to comply with these stipulations grants Buona the unilateral right to terminate the agreement, although Buona may extend the opening date if extenuating circumstances beyond the franchisee's control cause delays, provided the franchisee demonstrates reasonable efforts to open the business.