Does Buona require written consent to open for business after all other conditions are met?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not commence operation of the Franchised Business until: (1) the Franchisee entity has been established in accordance with Section 6.1 herein; (2) the premises of the Franchised Business has been developed in accordance with Section 6.2 herein; (3) Franchisee's Operating Owner and required managers have successfully completed the initial training program, Franchisee has hired the necessary staff of employees, and Franchisee has initiated a training program for its employees; (4) Franchisee has obtained all required certifications and license for operating the Franchised Business; (5) Franchisee has furnished Franchisor with copies of all insurance policies required by Article XII of this Agreement, and (6) Franchisee requests and obtains Franchisor's written consent to open for business.
Franchisee must have met the foregoing requirements and opened the Franchised Business within fifteen (15) months of Franchisor's written approval of the site for the Franchised Business.
Franchisor has the unilateral right (but not the obligation) to terminate the Agreement upon delivery of notice to Franchisee if it fails to open the Franchised Business with Franchisor's approval within the applicable time periods above.
If extenuating circumstances beyond Franchisee's control delay the opening of the Franchised Business and Franchisee has been making reasonable efforts to open the Franchised Business, Franchisor may (in its sole discretion) agree to extend the date for opening for an additional reasonable amount of time determined by Franchisor based on the circumstances.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must obtain written consent from Buona before commencing operation of the franchised business. This consent is contingent upon the franchisee meeting several requirements. These include establishing the franchisee entity according to specified guidelines, developing the business premises as per Buona's standards, ensuring the Operating Owner and required managers complete the initial training program, hiring necessary staff and initiating their training, and obtaining all required operating certifications and licenses.
Specifically, the franchisee must request and receive Buona's written consent to open for business after fulfilling all the aforementioned conditions. This requirement ensures that Buona maintains control over brand standards and operational readiness before a new location begins serving customers.
The FDD also states that a franchisee must meet all opening requirements and actually open the business within 15 months of Buona's written site approval. Failure to open within this timeframe grants Buona the unilateral right, but not the obligation, to terminate the franchise agreement. However, Buona may extend the opening date if extenuating circumstances beyond the franchisee's control cause delays, provided the franchisee demonstrates reasonable efforts to open the business. This clause protects Buona's interests while also providing some flexibility for franchisees facing unforeseen challenges.