What is the relationship between the franchisor's assistance in Item 11 and the franchisee's obligations as outlined in Item 9 for a Buona franchise, specifically regarding pre-opening assistance?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Disclosure Document Item | |
|---|---|---|---|
| a. | Site selection and acquisition/lease | Sections 1.1, 6.2, 6.3 9.2(b), and 16.2(a) Exhibit A | Item 11 |
| b. | Pre-opening purchases/leases | Sections 6.3 and 10.3 | Items 5 and 7 |
| c. | Site development and other pre-opening | Sections 1.1, 5.5, 6.1 – | Items 5, 6, 7, 8 and |
| requirements | 6.4, 8.2, and 8.3 | 11 |
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
Pre-Opening Assistance
Franchise Agreement
After the Franchise Agreement is signed and before you open your Buona Business, we or our designees will:
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- Grant you the right to use the Marks in connection with your Buona Business (Franchise Agreement, Section 5.1).
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- Provide you with lists of designated and approved suppliers and other purchasing standards and specifications and guidance on ordering (Franchise Agreement, Section 9.2(a) and Section 10.3)
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- While we provide you location research and assistance in selecting your site as we deem advisable, (including real estate and demographic analysis subject to the availability of our personnel (Franchise Agreement, Section 9.2(b)), it is your responsibility to decide on the location of your site for the Buona Business, subject to our approval (Franchise Agreement, Section 1.1 and Exhibit A).
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- Designate a Protected Area for your Buona Business (Franchise Agreement, Section 1.3 and Exhibit A).
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- Approve the letter of intent for your lease and your lease before execution by you as further discussed below (Franchise Agreement, Section 6.3)
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- Provide typical floor plans and site build-out specifications for the construction of your Buona Business and further assist you with the design and layout of your Buona Business (Franchise Agreement, Section 9.2(c)).
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- Provide one of our owners and a minimum of 3 managers with initial training. (Franchise Agreement, Section 8.2).
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- Provide pre-opening and grand opening assistance at your Buona Business with one or more of our representatives. (Franchise Agreement, Section 8.3).
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- Give you online access to the Manual. (Franchise Agreement, Section 7.1). The Table of Contents for the Manual is attached Exhibit F to this Franchise Disclosure Document. As of the date of this Disclosure Document, the Manual had a total of 394 pages. The Manual may exist in multiple parts, be in various locations and formats and may include a combination of audio, video, written materials, electronic media, website content and/or software components. The Manual currently includes the Operations Manual but in the future may include other manuals, including a Policies and Procedures Manual and Recipe Manual.
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- Provide you with written consent to open the Buona Business (Franchise Agreement, Section 6.5)
We have no other pre-opening obligations to you.
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Item 11 outlines the franchisor's assistance, while Item 9 details the franchisee's obligations. Regarding pre-opening, Buona provides several forms of assistance to franchisees. This includes granting the right to use their Marks, providing lists of approved suppliers, location research assistance, designating a protected area, approving the lease letter of intent and the lease itself, providing floor plans and site build-out specifications, initial training for owners and managers, pre-opening and grand opening assistance, online access to the Manual, and written consent to open the business. However, the FDD states that Buona is not required to provide any assistance except as listed.
Specifically, franchisees are responsible for site selection, though Buona offers location research and assistance as deemed advisable. The franchisee is ultimately responsible for deciding on the location, subject to Buona's approval. This indicates that while Buona offers support, the final decision and responsibility for the site lie with the franchisee.
Item 9 of the FDD cross-references Item 11 to show how the franchisee's obligations align with the franchisor's assistance. For example, under 'Site selection and acquisition/lease,' Item 9 references sections in the Franchise Agreement and Exhibit A, as well as Item 11, indicating that while Buona provides site selection assistance, the franchisee has obligations related to site selection and acquisition/lease. Similarly, 'Site development and other pre-opening requirements' in Item 9 references Item 11, highlighting the franchisee's responsibilities in site development, even though Buona provides assistance with design and layout.
In summary, Buona provides pre-opening assistance in several key areas, but the franchisee bears the ultimate responsibility for key decisions and compliance with requirements. This division of responsibilities is a typical arrangement in franchising, where the franchisor provides guidance and resources, but the franchisee manages the day-to-day operations and ensures the business meets the franchisor's standards.