What is the purpose of the 'Explanation of Negative Response' section on the Buona Franchise Acknowledgement Questionnaire?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement must be arbitrated in Illinois, if not resolved informally or by mediation? | | 10. | Yes | No | Do you understand that you must satisfactorily complete the initial training course before we will allow your franchised business to open or consent to a transfer? | | Signature of Franchise Applicant | Signature of Franchise Applicant | |----------------------------------|-------------------------------------------------------------------| | | | | | | | Name (please print) | Name (please print) | | Date | Date | | | EXPLANATION OF ANY NEGATIVE RESPONSES (REFER TO QUESTION NUMBER): | | Questionnaire Number | Explanation of Negative Response | | | | | | | | | | | | | | | | | | | | | | |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the 'Explanation of Negative Responses' section on the Franchise Acknowledgement Questionnaire is used to clarify any 'no' answers provided by the prospective franchisee. The questionnaire covers several key aspects of the franchising process, such as receipt of the Franchise Disclosure Document and Franchise Agreement, discussions with existing franchisees, and understanding of dispute resolution and training requirements.
If a prospective Buona franchisee answers 'no' to any of the questions on the Franchise Acknowledgement Questionnaire, they are required to provide an explanation in the designated section. This allows Buona to understand the reasons behind the negative response and address any potential issues or misunderstandings. For example, if a franchisee answers 'no' to receiving the Franchise Disclosure Document, Buona would need to ensure they receive it and understand its contents before proceeding.
This process helps ensure that the franchisee is fully informed and prepared before signing the Franchise Agreement. It also provides a record of the franchisee's understanding of critical aspects of the franchise relationship. However, it's important to note that, according to the FDD, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by the franchisor.