Under what circumstances might Buona extend the period for a franchisee to open their business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must have met the foregoing requirements and opened the Franchised Business within fifteen (15) months of Franchisor's written approval of the site for the Franchised Business.
Franchisor has the unilateral right (but not the obligation) to terminate the Agreement upon delivery of notice to Franchisee if it fails to open the Franchised Business with Franchisor's approval within the applicable time periods above.
If extenuating circumstances beyond Franchisee's control delay the opening of the Franchised Business and Franchisee has been making reasonable efforts to open the Franchised Business, Franchisor may (in its sole discretion) agree to extend the date for opening for an additional reasonable amount of time
determined by Franchisor based on the circumstances.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the standard timeframe for a franchisee to open their business is 15 months from the date of written site approval. However, Buona may, at its discretion, extend this deadline if extenuating circumstances beyond the franchisee's control cause delays, and if the franchisee demonstrates reasonable efforts to open the business. The length of any extension is determined by Buona based on the specific circumstances.
This clause provides some flexibility for franchisees facing unforeseen obstacles during the opening process. Examples of extenuating circumstances could include permitting delays, unexpected construction issues, or natural disasters. However, the FDD stipulates that the franchisee must actively demonstrate reasonable efforts to mitigate the delay and proceed with the opening.
It is important to note that Buona retains sole discretion over whether to grant an extension and to determine its length. A prospective franchisee should discuss with Buona what specific documentation or proof may be required to demonstrate both the extenuating circumstances and the franchisee's reasonable efforts to overcome them. Understanding Buona's criteria for granting extensions is crucial for managing expectations and mitigating potential risks during the franchise opening process.