For each Buona Restaurant developed in the Development Area, is a separate Franchise Agreement required?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
For each Buona Restaurant developed in the Development Area, a separate Franchise Agreement shall be executed and the individual franchise fee as prescribed hereunder shall be paid to us. It is understood and agreed by you that any and all Franchise Agreements executed in connection with Buona Restaurants developed by you within the Development Area under this Agreement are independent of this Agreement. The continued existence of any such Franchise Agreement shall not depend on the continuing existence of this Agreement. If any conflict shall arise in connection with this Agreement and any Franchise Agreement executed within the Development Area, the Franchise Agreement shall have precedence and superiority over this Agreement.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a separate Franchise Agreement is required for each Buona Restaurant developed within the Development Area. Additionally, the individual franchise fee must be paid for each restaurant. The terms and conditions outlined in each Franchise Agreement will govern the establishment and operation of the respective franchised restaurant.
This means that if a developer plans to open multiple Buona locations within a designated area, they will need to sign a new Franchise Agreement for each location. Each agreement operates independently, and its continuation does not depend on the overarching Development Agreement. This is a fairly standard practice in franchising, as it allows the franchisor to maintain control over each individual location and ensures that each franchisee is bound by the specific terms and conditions applicable to their restaurant.
Furthermore, the FDD states that any Franchise Agreements executed in connection with Buona Restaurants developed within the Development Area under the Development Agreement are independent of the Development Agreement. If any conflict arises between the Development Agreement and any Franchise Agreement executed within the Development Area, the Franchise Agreement takes precedence. This clause clarifies the relationship between the Development Agreement and individual Franchise Agreements, establishing the latter as the primary governing document for each restaurant's operation.