Who is responsible for the expenses associated with relocating a Buona Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Any such relocation shall be at Franchisee's sole expense, and shall not be undertaken without Franchisor's prior written consent.
Franchisee shall pay to Franchisor a relocation fee in the amount of fifty percent (50%) of the then-current Initial Franchise Fee to cover Franchisor's services and associated costs in connection with such relocation, including those related to (i) reviewing and approving the new location and the construction drawings for the Franchised Business at its new location and (ii) providing additional on-site training and assistance.
Franchisee shall pay fifty percent (50%) of the relocation fee when Franchisor grants the approval to relocate and the balance of the relocation fee upon Franchisor's acceptance of the new location for the Franchised Business.
(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 Businesss so to prevent any possibility of confusion by the public (including, without limitation, removal of all distinctive physical and structural features identifying Franchised Businesss 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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all expenses associated with relocating a Buona restaurant. The FDD specifies that any relocation of the franchised business will be at the franchisee's sole expense and cannot occur without Buona's prior written consent.
In addition to covering the relocation expenses, the franchisee must pay Buona a relocation fee equal to fifty percent (50%) of the then-current Initial Franchise Fee. This fee covers Buona's services and associated costs related to reviewing and approving the new location, construction drawings, and providing additional on-site training and assistance. The franchisee pays half of the relocation fee when Buona approves the relocation and the remaining balance upon Buona's acceptance of the new location.
Furthermore, Buona has the right to require the franchisee to upgrade the relocated franchised business to meet Buona's current image, standards, and specifications for new restaurants, adding to the franchisee's financial burden. The franchisee is also responsible for removing all signs, fixtures, and materials displaying Buona's trademarks from the former location at their own expense and modifying the premises to clearly differentiate it from its former appearance to avoid public confusion.
These relocation terms highlight the significant financial responsibility placed on Buona franchisees should they need to move their restaurant. Franchisees should carefully consider these potential costs and obligations when evaluating the franchise opportunity and ensure they have sufficient capital to cover such expenses if they arise.