Who is responsible for the final site selection for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
6.2 Site Selection and Approval. If the location is not designated on Exhibit A at the time this Agreement is executed, it is Franchisee's sole responsibility to undertake site selection activities and otherwise secure the premises for the Franchised Business. Prior to entering into a lease for a site, Franchisee must submit to Franchisor a site evaluation form for the proposed site, together with a letter of intent, proposed lease, or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the proposed site. Franchisor in its discretion shall determine what factors it will consider in approving or disapproving a site, including but not limited to characteristics of the location and premises and financial terms of the proposed purchase agreement or lease. In the event that Franchisee proposes to lease the proposed site from an affiliated entity, or an entity that includes any member or shareholder of the Franchisee business entity as a member or shareholder, Franchisor may be required to submit a proforma and/or draft lease to Franchisor before a determination is made by Franchisor regarding approval of the site. Franchisee or the affiliated entity shall not secure financing or purchase the property until the site has been approved by Franchisor. Franchisor will provide Franchisee written notice of approval or disapproval of the proposed site within thirty (30) days after receiving Franchisee's written proposal and all required documents. Franchisee must obtain Franchisee's written approval
of a proposed site before entering into a lease. Franchisee must have a proposed site approved by Franchisor within nine (9) months of the date of the execution of this Agreement. Franchisor has the unilateral right (but not the obligation) to terminate the Agreement upon delivery of notice to Franchisee if Franchisee has not obtained Franchisor's written approval of a site for the Franchised Business within time frames described above. While Franchisor may use its experience in providing any assistance to Franchisee regarding site selection and in approving a site, nothing contained herein shall be interpreted as a guarantee of success for said location.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee has the primary responsibility for site selection. However, Buona retains final approval authority over the proposed location.
Specifically, the franchisee must undertake site selection activities and secure the premises. Before entering into a lease, the franchisee must submit a site evaluation form, a letter of intent, a proposed lease, or other evidence satisfactory to Buona. Buona then determines, at its discretion, the factors it will consider when approving or disapproving a site. These factors include the characteristics of the location and premises, as well as the financial terms of the proposed purchase agreement or lease.
The franchisee cannot secure financing or purchase the property until Buona has approved the site. Buona will provide written notice of approval or disapproval within 30 days of receiving the franchisee's proposal and all required documents. The franchisee must obtain Buona's written approval before entering into a lease.
The franchisee has nine months from the date of the agreement's execution to obtain Buona's written approval of a site. Buona has the right to terminate the agreement if the franchisee does not obtain site approval within this timeframe. While Buona may offer assistance and use its experience in the site selection process, this does not guarantee the location's success.