What is required of the landlord for the lease of the Buona premises to be approved by the franchisor?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's approval of the lease shall also be conditioned upon the landlord's execution of the Addendum to Lease and Collateral Assignment attached hereto as Exhibit B, or inclusion in the lease of the same or similar terms as approved by Franchisor.
The requirements set forth herein apply whether the lessor is an unrelated third party or is an affiliate of Franchisee.
Once executed, Franchisee will provide Franchisor with a fully signed copy of the complete lease for the premises of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, before a franchisee executes a lease for their Buona business premises, the franchisor must approve the letter of intent and the proposed lease. Buona may mandate that the letter of intent and lease contain commercially reasonable terms that reflect current market conditions, along with specific terms and provisions.
Buona's approval of the lease is contingent upon the landlord's execution of the Addendum to Lease and Collateral Assignment, which is included as Exhibit B in the FDD. Alternatively, the lease must incorporate the same or similar terms as those approved by Buona. These requirements apply regardless of whether the lessor is an unrelated third party or an affiliate of the franchisee.
After the lease is signed, the franchisee must provide Buona with a fully signed copy of the complete lease for the business premises. This ensures that Buona has a record of the lease terms and conditions under which the franchisee is operating.