factual

Under the Buona agreement, does Buona grant the franchisee the right to use the Marks directly in the agreement?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 6.1 Notwithstanding any provision to the contrary under this Agreement, it is understood and agreed that under this Agreement we do not grant you any right to use the Marks.

Any right to use the Marks is granted under the individual franchise agreements executed by you in connection with this Agreement.

You must not use the Marks, or any portion of any Mark or any name confusingly similar to any Mark as part of your business entity name.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, the Development Agreement does not directly grant the right to use Buona's Marks. Section 6.1 of the agreement clarifies that any right to use the Marks is granted under the individual franchise agreements executed in connection with the Development Agreement. Therefore, the Development Agreement itself does not authorize the developer to use the Marks.

This distinction is important for potential developers because it means that entering into a Development Agreement with Buona does not automatically grant the right to operate a Buona restaurant or use its trademarks. The right to use the Marks is contingent upon executing separate franchise agreements for each location to be developed. This structure allows Buona to maintain control over its brand and ensure that each franchised location meets its standards before allowing the use of its Marks.

Furthermore, the agreement stipulates that the developer cannot use Buona's Marks or any confusingly similar name as part of their business entity name. This restriction reinforces Buona's control over its brand identity and prevents any potential confusion in the marketplace. The developer's rights are limited to developing Buona Restaurants under the Development Agreement, and any unauthorized use of the Marks would be a breach of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.