Who is responsible for the selection of a site for the Approved Location of a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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 is solely responsible for site selection activities and securing the premises for the franchised business. However, prior to entering into a lease, the franchisee must submit a site evaluation form, a letter of intent, and a proposed lease to Buona for approval.
Buona, in its discretion, determines the factors it will consider for site approval, including the location's characteristics, premises, and the financial terms of the proposed agreement or lease. If the franchisee proposes to lease the site from an affiliated entity, Buona may require a proforma and/or draft lease before making a determination. The franchisee cannot secure financing or purchase the property until Buona approves 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 written approval before entering into a lease and must have a proposed site approved within nine months of the franchise agreement's execution. Buona has the right to terminate the agreement if the franchisee does not obtain site approval within the specified timeframe.
While Buona may offer assistance and guidance regarding site selection, this does not guarantee the location's success. Ultimately, the franchisee bears the responsibility for finding and securing a suitable location that meets Buona's approval criteria within the given timeframe.