Under the Area Development Agreement for Buona, what exhibit describes the Development Area?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Area Development Agreement, an exclusive territory is designated within which it is expected you will develop the multiple Buona Businesses during the term of the Area Development Agreement ("Development Area"). The Development Area will be described in Exhibit A to the Area Development Agreement. The size of the Development Area will vary and will depend on the number of restaurants you intend to open, our analysis of the market potential and your financial and operational abilities.
As long you are in compliance with the Development Schedule and otherwise in compliance with the Area Development Agreement, during the term of the Area Development Agreement, we will not establish, nor license anyone other than Developer the right to establish any Buona Business in the Development Area. We (and any affiliate) reserve the right:
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- To distribute products and services which are part of the System through any alternative distribution channels including, but not limited to, supermarkets and other retail facilities, wholesale sale, catalogs, direct marketing, the Internet or similar electronic media, using the Marks;
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- To establish businesses which are franchised, licensed or owned by us or any affiliate at any locations we deem appropriate or distribute products or services which are similar to the products and services offered under the System under trade names, trademarks, service marks, trade dress or other commercial symbols other than the Marks;
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- To acquire or be acquired by another franchisor establishing businesses identical or similar to the Buona Business, even if the other business operates, franchises, and/or licenses competitive businesses anywhere, including the Development;
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- To implement and maintain multi-area marketing programs at any time, including internet and regional or national accounts. We reserve the right to establish mandatory policies and procedures for these multi-area marketing programs;
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- to engage in any other business activities not expressly prohibited by the Area Development Agreement.
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- Your continued exclusive rights to the Development Area are dependent upon you meeting all of the deadlines in the Development Schedule.
Source: Item 12 — TERRITORY (FDD pages 46–48)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Development Area, which is the exclusive territory where a developer is expected to open multiple Buona restaurants, is described in Exhibit A of the Area Development Agreement. The size of this Development Area is not fixed; instead, it varies based on factors such as the number of restaurants the developer plans to open, Buona's assessment of the market potential, and the developer's financial and operational capabilities.
Buona assures that as long as the developer adheres to the Development Schedule and complies with the Area Development Agreement, Buona will not establish or license anyone else to establish a Buona Business within the Development Area during the agreement's term. However, Buona retains several rights, including the right to distribute products through alternative channels like supermarkets or the internet, establish businesses with similar products under different trademarks, and engage in other business activities not expressly prohibited by the Area Development Agreement.
It's important to note that the developer's continued exclusive rights to the Development Area are contingent upon meeting all deadlines outlined in the Development Schedule. Failure to meet these deadlines could result in termination of the Area Development Agreement, reduction in the number of restaurants the developer is authorized to open, or other legal remedies available to Buona. This highlights the importance of carefully reviewing and understanding the Development Schedule before entering into an Area Development Agreement with Buona.