Does Buona reserve the right to waive conditions or requirements for transfers to a new entity or existing franchisee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of such transfer, Franchisor reserves the right to waive conditions or requirements contained in Section 15.3 in its sole discretion and to require the Principals of the transferee to execute a Guaranty and Assumption of Franchisee's Obligations as required by Section 6.1.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona retains the right to waive certain transfer conditions. Specifically, in the event of a transfer, Buona reserves the right to waive conditions or requirements outlined in Section 15.3 of the franchise agreement. This waiver is at Buona's sole discretion.
However, Buona may also require the principals of the entity receiving the franchise to execute a Guaranty and Assumption of Franchisee's Obligations, as detailed in Section 6.1 of the agreement. This ensures that the new entity's principals are legally bound to uphold the franchisee's responsibilities.
This clause provides Buona with flexibility in assessing potential franchisees during a transfer. It allows them to expedite or simplify the transfer process in certain situations, while still maintaining control over who becomes a franchisee and ensuring financial obligations are met through the guaranty agreement.