What are the requirements for an approved transfer of a Buona franchise following the franchisee's death?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
15.6 Transfer on Death or Mental Incapacity. Upon the death or mental or physical incapacity of any person with an interest in this Agreement as determined by a physician, the Franchised Business or Franchisee, the executor, administrator, or personal representative of such person shall transfer his interest to a third party approved by Franchisor within twelve (12) months after such death or mental incapacity. Such transfer, including but not limited to transfer by devise or inheritance, shall be subject to the same conditions as any inter vivos transfer. However, in the case of transfer by devise or inheritance, if the heirs or beneficiaries of any such person are unable to meet the conditions in this Article XV, the personal representative of the deceased Franchisee shall have a reasonable time, but in no event more than twelve (12) months from Franchisee's death, to sell or transfer the deceased's interest in this Agreement and the Franchised Business, which sale or assignment shall be subject to all the terms and conditions for assignments and transfers contained in this Agreement. If the interest is not sold or assigned within the twelve (12) month period, Franchisor may terminate this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, in the event of the death or mental or physical incapacity of a person with interest in the Franchise Agreement, their executor, administrator, or personal representative must transfer the interest to a Buona-approved third party within twelve months. This transfer is subject to the same conditions as any transfer made during the franchisee's lifetime.
However, if the heirs or beneficiaries cannot meet the standard transfer conditions, the personal representative has a reasonable time, up to twelve months from the franchisee's death, to sell or transfer the deceased's interest. This sale or assignment is subject to all the standard terms and conditions for transfers outlined in the Franchise Agreement.
If the interest is not sold or assigned within the specified twelve-month period, Buona retains the right to terminate the Franchise Agreement. This clause ensures that the Buona franchise continues to be operated by a qualified and approved individual, even in unforeseen circumstances such as death or incapacity, while providing a reasonable timeframe for the franchisee's estate to manage the transfer.