What is the procedure if a Buona premises is damaged and cannot be repaired within six months?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
However, if, through no fault of Franchisee, the premises are damaged or destroyed by an event not within the control of Franchisee such that repairs or reconstruction cannot be completed within six (6) months thereafter, then Franchisee shall have thirty (30) days after such event in which to apply for Franchisor's approval to relocate the Franchised Business and/or reconstruct the premises, which approval shall not be unreasonably withheld, provided Franchisee is not then in default under this Agreement or any other agreement between Franchisee and Franchisor or any of its Affiliates, but may be conditioned upon the payment of an agreed minimum royalty to Franchisor during the period in which the Franchised Business is not in operation;
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if the premises are damaged or destroyed through no fault of the franchisee and repairs or reconstruction cannot be completed within six months, the franchisee has 30 days after the event to apply for Buona's approval to relocate the franchised business and/or reconstruct the premises.
Buona's approval for relocation or reconstruction will not be unreasonably withheld, provided the franchisee is not in default under the Franchise Agreement or any other agreement with Buona or its affiliates. However, Buona may condition its approval upon the payment of an agreed minimum royalty during the period in which the business is not in operation.
This clause protects the franchisee from immediate termination if an unforeseen event damages the premises. However, it also allows Buona to continue receiving some income through a minimum royalty payment during the downtime. The franchisee bears the responsibility of applying for approval to relocate or reconstruct within the specified timeframe, and non-compliance with other agreements could jeopardize the approval.