Are the rights and remedies conferred upon Buona in the franchise agreement exclusive?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ol cafeterias);
- (d) Government institutions and facilities such as military bases;
- (e) Enclosed shopping malls;
- (f) Entertainment venues, including casinos;
- (g) Sports stadiums; and
- (h) Amusement and/or theme parks.
- 1.5 Reservation of Rights. Except as otherwise set forth herein, (a) the franchise granted to Franchisee under this Agreement is non-exclusive, and Franchisor grants to Franchisee the rights to establish and operate the Franchised Business at only the specific Approved Location, (b) no other exclusive, protected or other territorial rights related to the Franchised Business or otherwise is to be inferred and (c) Franchisor and/or its Affiliates have the right to operate and grant as many other franchises for the operation of Franchised Businesses other than the Protected Area, anywhere in the world, as they shall, in their sole discretion, elect.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchise granted to a franchisee is non-exclusive, meaning Buona retains the right to operate or franchise other Buona businesses outside of a franchisee's protected area. The franchisee's rights to establish and operate a Buona business are limited to the specific approved location.
Buona and its affiliates have the right to operate and grant as many other franchises for Buona businesses as they choose, anywhere in the world, except within the franchisee's protected area. Buona retains rights within or outside the protected area without compensating the franchisee. These rights include developing other systems for selling similar or different products using the same marks and distributing Buona products through various locations, such as transportation facilities, educational facilities, institutional feeding facilities, and government institutions.
This non-exclusive arrangement means that while a franchisee has a protected area, Buona can still operate or franchise other locations outside that area, potentially impacting the franchisee's business. A prospective franchisee should consider this non-exclusive nature and the potential for competition from other Buona locations when evaluating the franchise opportunity.