Can Buona require a franchisee to upgrade the relocated Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Franchisor shall also have the right to require Franchisee to upgrade the relocated Franchised Business to conform to Franchisor's then current image, standards, and specifications for construction and equipment for all new Franchised Businesses.
(c) In the event of a relocation of the Franchised Business, Franchisee shall promptly remove from the former Franchised Business premises any and all signs, fixtures, furniture, posters, furnishings, equipment, menus, advertising materials, stationery, supplies, forms and other articles which display any of the Marks and distinctive features or designs associated with the System.
Any articles which display any of the Marks or any distinctive features or designs associated with the System which are not used by Franchisee at the new Franchised Business location shall be disposed of by Franchisee as directed by Franchisor following notice to Franchisor to the effect such articles will not be used at the new Franchised Business.
Furthermore, Franchisee shall, at Franchisee's expense, immediately make such modifications or alterations as may be necessary to distinguish the former Franchised Business premises so clearly from its former appearance and from other Franchised Businesses so to prevent any possibility of confusion by the public (including, without limitation, removal of all distinctive physical and structural features identifying Franchised Businesses and removal of all distinctive signs and emblems).
Franchisee shall, at Franchisee's expense, make such specific additional changes as Franchisor may reasonably request for this purpose.
If Franchisee fails to initiate immediately or complete such alterations within such period of time as Franchisor deems appropriate, Franchisee agrees that Franchisor or its designated agents may enter the premises of the former Franchised Business and adjacent areas at any time to make such alterations as Franchisor deems appropriate to distinguish Franchisee's former Franchised Business premises, without liability for trespass.
Franchisee expressly acknowledges that failure to make such alterations will cause irreparable injury to Franchisor and hereby consents to entry, at Franchisee's expense, of any ex parte order by any court of competent jurisdiction authorizing Franchisor or its agents to take such action, if Franchisor seeks such an order.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee relocates their Franchised Business, Buona has the right to mandate that the franchisee upgrade the relocated business. This upgrade must conform to Buona's current image, standards, and specifications for construction and equipment, aligning it with the standards of all new Franchised Businesses.
This requirement means that if Buona updates its brand standards, a franchisee moving to a new location may be forced to invest additional capital to comply with these new standards. This could include changes to the building's design, equipment, and overall appearance to match the current brand image. The franchisee bears the financial responsibility for these upgrades.
Additionally, upon relocation, the franchisee must remove all signs, fixtures, and materials displaying Buona's marks from the former location. The franchisee is also responsible for modifying the old premises to clearly differentiate it from its former appearance and other Buona locations to avoid public confusion. Failure to do so allows Buona to enter the former premises and make the necessary alterations at the franchisee's expense, potentially through a court order.