When transferring a Buona franchise, under what circumstances is the transferee not required to complete a Franchised Business Renovation?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) The transferee shall agree at its sole cost and expense, to complete a Franchised Business Renovation, within the time frame required by Franchisor, unless a Franchised Business Renovation was completed less than five (5) years prior to the date of the transfer, and perform such
other scope of work as may be determined by Franchisor;
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a transferee is not required to complete a Franchised Business Renovation if a renovation was completed less than five years prior to the date of the transfer. However, the transferee may still be required to perform other work as determined by Buona.
This condition provides some potential cost savings for the incoming franchisee, as a full renovation can be a significant expense. However, it's important to note that Buona retains the right to require other updates or modifications, even if a full renovation isn't mandated. This ensures that all Buona locations maintain a consistent brand image and meet current standards.
Prospective franchisees should clarify with Buona what specific scope of work, beyond a full renovation, might be required in the event of a transfer within that five-year window. Understanding these potential obligations is crucial for accurately assessing the financial investment needed to take over an existing Buona franchise.