What is the purpose of Exhibit A, the Approved Location and Buona Protected Area Addendum, as it relates to a Buona 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, Exhibit A, titled "Approved Location and Buona Protected Area Addendum," serves to define the franchisee's protected area. Once the approved location for the Buona restaurant is determined, both Buona and the franchisee will complete and execute Exhibit A, which includes a detailed description of the Buona Protected Area.
The Buona Protected Area is a geographic region around the approved location. For non-urban locations, the protected area will have a minimum population of 60,000 people. If the location is in an urban area, the protected area extends to a one-half (1/2) mile radius around the approved location. This delineation aims to provide the franchisee with a degree of exclusivity, preventing Buona from establishing or granting another franchise within the defined area during the term of the agreement, provided the franchisee remains in compliance with all agreements.
However, the protected area has limitations. Buona retains the right to franchise or operate businesses in specific types of locations, even within the franchisee's protected area. These "Captive Locations" include transportation facilities like airports and train stations, educational facilities, institutional feeding facilities, government institutions, enclosed shopping malls, entertainment venues like casinos, sports stadiums, and amusement or theme parks. Additionally, the franchisee does not have any protected area or exclusive rights relating to The Original Rainbow Cone portion of the Franchised Business.