Under the Area Development Agreement, what costs must a Buona area developer indemnify Buona for?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Actual costs incurred by us. | As incurred | You have to reimburse us if we are held liable for claims arising from your operation of the development business or incur costs in defending them. |
| Costs and Attorney's Fees | Actual costs incurred by us. | As incurred | You must reimburse us for costs and attorneys' fees for enforcement of covenants, for obtaining specific performance of injunctive relief, and if we are successful in an action to enforce the Area Development Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, as an area developer, you must indemnify Buona for actual costs incurred by them. Specifically, if Buona is held liable for claims arising from your operation of the development business, you are responsible for reimbursing Buona for those costs. This also includes any expenses Buona incurs in defending against such claims.
In addition to indemnification, you must also reimburse Buona for actual costs incurred for costs and attorney's fees for enforcement of covenants, for obtaining specific performance of injunctive relief, and if Buona is successful in an action to enforce the Area Development Agreement.
These fees are due as they are incurred. All fees under the Area Development Agreement are imposed uniformly and are non-refundable.