What is the 'System' referring to in the context of establishing and operating Buona restaurants?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Chicago's Original and Five Flavors and their respective affiliates have developed and own a unique system for operating and granting others the right to own and operate a restaurant business offering products to the general public at the restaurant premises or by delivery service, with the Buona System having a menu featuring Italian beef sandwiches and including a variety of sandwiches, pasta, burgers, hot dogs, salads and dessert and with The Original Rainbow Cone System having a menu featuring a variety of high quality ice cream cones, ice cream cakes, sundaes and shakes, packaged ice cream, mini-donuts and related products; The systems of both Chicago's Original and Five Flavors shall be collectively referred to herein as the "System";
WHEREAS, Chicago's Original identifies its System by means of certain trade names, service marks, trademarks, logos, emblems, and other indicia of origin, including but not limited to the mark "Buona," "Buona Beef" and such other trade names, service marks, trademarks, logos, designs, and trade dress as are now, or may hereafter, be designated by it for use in connection with the Buona System and Five Flavors identifies its System by means of certain trade names, service marks, trademarks, logos, emblems, and other indicia of origin, including but not limited to the mark "The Original Rainbow Cone" and such other trade names, service marks, trademarks and trade dress as are now, or may hereafter, be designated by it for use in connection with The Original Rainbow Cone System. The marks of both Systems licensed to you under this Agreement shall be collectively referred to herein as the "Marks";
WHEREAS, Franchisor also grants development rights to persons or entities who meet our qualifications and who are willing to undertake the investment and effort necessary to establish, develop, own and operate multiple single brand Franchised Restaurants and/or dual brand Buona/The Original Rainbow Cone restaurants in accordance with the System. Buona restaurants and Buona/The Original Rainbow Cone restaurants are collectively referred to herein as "Franchised Restaurants."
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the 'System' refers to the unique methods developed and owned by Chicago's Original and Five Flavors for operating a restaurant business. This system allows franchisees the right to operate a restaurant that offers products to the general public either at the restaurant or through delivery services. The Buona System's menu is characterized by Italian beef sandwiches, along with a variety of other offerings such as sandwiches, pasta, burgers, hot dogs, salads, and desserts. The Original Rainbow Cone System features high-quality ice cream cones, ice cream cakes, sundaes, shakes, packaged ice cream, mini-donuts, and related products.
Buona identifies its System through specific trade names, service marks, trademarks, logos, and emblems, including the marks "Buona" and "Buona Beef." Similarly, Five Flavors identifies its System using marks like "The Original Rainbow Cone." These marks, licensed under the agreement, are collectively referred to as the "Marks." The franchise also grants development rights to individuals or entities that meet the qualifications and are prepared to invest the necessary resources to establish, develop, own, and operate multiple single-brand Buona restaurants or dual-brand Buona/The Original Rainbow Cone restaurants, all in accordance with the System.
For a prospective franchisee, understanding the System is crucial as it dictates the operational standards, menu, and branding that must be adhered to. The franchisee's rights to use the System and the associated Marks are granted under the individual franchise agreements. This means that compliance with the System is essential for maintaining the franchise agreement and leveraging the established brand identity of Buona. The FDD emphasizes that the franchisee does not gain rights to use the Marks or the System simply by entering into the Development Agreement; these rights are specifically tied to the individual franchise agreements executed for each restaurant.