When transferring a Buona franchise, is the franchisee required to remain obligated under the covenants in Article XIV?

According to Buona's 2025 Franchise Disclosure Document, a franchisee who transfers their franchise must agree to remain obligated under the covenants in Article XIV as if the franchise agreement had been terminated on the date of the transfer. This requirement is one of the conditions that Buona sets for consenting to the transfer of a franchise.

This means that even after a franchisee sells their Buona business, they are still bound by the terms outlined in Article XIV. These terms likely include non-compete clauses, confidentiality agreements, and other restrictions that protect Buona's interests. The obligation remains as if the agreement was terminated on the transfer date, suggesting that the restrictions are still in effect from that point forward.

For a prospective Buona franchisee, this condition highlights the importance of fully understanding the obligations within Article XIV before entering into a franchise agreement. It also emphasizes that these obligations extend beyond the period of active ownership and can impact future business ventures even after the franchise is sold.