Does Buona have the right to inquire about a franchisee's business dealings with their bank, suppliers, and landlord?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
e'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.
- 6.3 Lease of Premises. Any letter of intent for a lease for the premises of the Buona Business and any proposed lease for the premises of the Buona Business must be approved by Franchisor before it is executed by Franchisee. Franchisor may, in its discretion, require that the letter of intent and the lease contain commercially reasonable terms based on current market conditions and that certain terms and provisions be included in the letter of intent and the lease. Franchisor's approval of the lease shall also be conditioned upon the landlord's execution of the Addendum to Lease and Collateral Assignment attached hereto as Exhibit B, or inclusion in the lease of the same or similar terms as approved by Franchisor. The requirements set forth herein apply whether the lessor is an unrelated third party or is an affiliate of Franchisee. Once executed, Franchisee will provide Franchisor with a fully signed copy of the complete lease for the premises of the Franchised Business.
- 6.4 Premises Development**.** Prior to obtaining possession of the site for the Buona Business, Franchisee shall secure all financing required to fully develop the Buona Business. Promptly after obtaining possession of the site for the Franchised Business, Franchisee will: (i) cause to be prepared and submit for
approval by Franchisor a site plan. Franchisor shall then provide basic drawings and specifications, including requirements for dimensions, exterior design, materials, interior layout, equipment, fixtures, furniture, signs, and decorating required for the development of the Franchised Business; Franchisee is required to hire a licensed architect designated by Franchisor and have these drawings and specifications modified by the architect as required, to meet applicable ordinances, building codes or permit requirements (Franchisor must approve any such modifications to the drawings and specifications); and to fit the configuration of the approved site;
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has specific rights regarding a franchisee's dealings with landlords and suppliers. Before a franchisee executes any lease for their Buona Business premises, the letter of intent and the proposed lease must be approved by Buona. Buona may also require that the lease contain commercially reasonable terms based on current market conditions and that certain terms and provisions be included in the letter of intent and the lease. The landlord must also execute an Addendum to Lease and Collateral Assignment. Once the lease is executed, the franchisee must provide Buona with a fully signed copy of the complete lease.
Buona also maintains control over the suppliers a franchisee can use. To maintain the quality and consistency of the Buona brand, franchisees must purchase all fixtures, furniture, signs, equipment, materials, products, supplies, and certain services from distributors and suppliers that Buona has designated or approved. These standards and specifications for suppliers include requirements relating to product quality, prices, consistency, safety, reliability, financial capability, and customer relations. Buona reserves the right to make a profit on sales from designated or approved suppliers and may also receive rebates from these suppliers.
The FDD excerpts do not explicitly state whether Buona has the right to inquire about a franchisee's business dealings with their bank. A prospective franchisee should seek clarification from Buona regarding their rights to access or inquire about a franchisee's financial dealings with their bank.