After termination or expiration of a Buona franchise, for how long is involvement in a Competitive Business restricted, and within what geographic radius?

According to Buona's 2025 Franchise Disclosure Document, franchisees are subject to certain non-competition restrictions after the franchise agreement is terminated or expires. Specifically, a former franchisee is prohibited from involvement in a Competitive Business for a period of 2 years. This restriction applies within a 10-mile radius of the site of any Buona Business, regardless of whether the franchisee formerly owned that specific location. There is an exception to this restriction: owning less than 2% of the outstanding shares of a publicly traded security.

In practical terms, this means that if a franchisee's agreement ends, they cannot open a similar restaurant or become involved with a competing business within 10 miles of any Buona location for two years. This could significantly limit a former franchisee's options if they wish to remain in the restaurant industry in the same geographic area. The non-compete aims to protect Buona's market share and brand recognition by preventing former franchisees from using their knowledge of the Buona system to benefit a competitor.

It is important to note that these restrictions are in addition to those in place during the term of the franchise agreement, which prohibit involvement in any Competitive Business anywhere and any diversion of business or customers of Buona. Franchisees should carefully consider these limitations before entering into an agreement, as they could impact their future career choices. The FDD also states that franchisees are prohibited from soliciting Buona employees or other Buona franchisees' employees for 1 year after termination or expiration of the franchise agreement.