How is the Buona Protected Area described in the franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
s outside of and apart from the operation of the Franchised Business at the Approved Location without Franchisor's prior written consent, which may be withheld by Franchisor in its sole discretion.
1.3 Protected Area. Subject to the terms and conditions of this Agreement and provided Franchisee or any of its affiliated companies is not otherwise in default of this Agreement or in default of any other agreement with Franchisor or with a parent, subsidiary or affiliate of Franchisor ("Affiliates"), Franchisor shall not establish, nor grant another the right to establish a Buona Restaurant during the Term, within the area described in Exhibit A of this Agreement (the "Buona Protected Area"), without Franchisee's prior written consent. The Buona Protected Area will be a geographic area around the Approved Location with a minimum people population of Sixty Thousand (60,000) if the Approved Location is in a non-urban location and a one-half (1/2) mile radius around the Approved Location if it is located in an urban area. Upon determination of the Approved Location, Franchisor and Franchisee shall complete and execute Exhibit A with a description of the Buona Protected Area. Franchisee is not granted a protected area or any exclusive rights relating to The Original Rainbow Cone portion of the Franchised Business.
1.4 Limitations to Protected Area. The provisions of Section 1.3 shall not apply if the Franchised Business is operated in any of the following types of locations and/or with respect to such locations within the Buona Protected Area ("Captive Locations"), at which Franchisor retains the right, in its sole discretion, to franchise and/or operate Franchised Businesses, and to distribute by any means products and services of the System:
(a) Transportation facilities (including but not limited to airports, train stations, bus stations, etc.);
(b) Educational facilities (including but not limited to schools, colleges and universities);
(c) Institutional feeding facilities (including but not limited to hospitals, hotels, and corporate or school cafeterias);
- (d) Government institutions and facilities such as military bases;
- (e) Enclosed shopping malls;
- (f) Entertainment venues, including casinos;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchise agreement grants a protected area to franchisees, subject to certain terms and conditions. Buona will not establish, nor grant another the right to establish a Buona Restaurant during the Term, within the Buona Protected Area, without the franchisee's prior written consent, provided the franchisee is not in default of the agreement. The specific area is detailed in Exhibit A of the franchise agreement.
The Buona Protected Area is defined as a geographic area around the Approved Location. If the Approved Location is in a non-urban location, the protected area will have a minimum population of 60,000 people. For Approved Locations in an urban area, the Buona Protected Area will be a one-half (1/2) mile radius around the location. The exact description of the Buona Protected Area is to be completed and executed by both Buona and the franchisee in Exhibit A upon determination of the Approved Location.
However, the protected area has limitations. Buona retains the right to franchise or operate Franchised Businesses and distribute products and services within the Buona Protected Area in certain Captive Locations. These locations include transportation facilities, educational facilities, institutional feeding facilities, government institutions, enclosed shopping malls, entertainment venues including casinos, sports stadiums, and amusement/theme parks. Additionally, the franchisee does not have a protected area or any exclusive rights relating to The Original Rainbow Cone portion of the Franchised Business.