What is the timeframe for satisfying a final judgment against Buona business assets before it constitutes a default?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2 You shall be in default under this Agreement, and all rights granted herein to you shall automatically terminate without notice or an opportunity to cure if:
- (b) if a final judgment against your business assets remains unsatisfied of record for thirty (30) days or longer (unless supersedeas bond is filed);
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee will be in default if a final judgment against their business assets remains unsatisfied for 30 days or longer. However, this default can be avoided if a supersedeas bond is filed.
A supersedeas bond is a type of surety bond that a party who is appealing a court decision can obtain to delay payment of the judgment until the appeal is decided. By filing this bond, the franchisee can prevent Buona from terminating the agreement during the appeal process.
This clause protects Buona by ensuring franchisees meet their financial obligations. Simultaneously, it offers franchisees a window to address judgments through appeals or other legal means without immediately losing their franchise rights, provided they file a supersedeas bond. This is a fairly standard clause in franchise agreements, as it balances the interests of both the franchisor and franchisee in maintaining financial stability and legal compliance.