Under what circumstances is Buona not obligated to offer the developer the right to establish or operate an additional Buona Restaurant within the Development Area?

According to Buona's 2025 Franchise Disclosure Document, Buona is not obligated to offer the developer the right to establish or operate an additional Buona Restaurant within the Development Area under specific circumstances. These circumstances include situations where bona fide arrangements or agreements with a third party, lease restrictions for the proposed premises, or other conditions related to the establishment of the additional Buona Restaurant prevent or restrict the developer from operating the additional restaurant, or prevent Buona from offering the rights to the developer.

This provision protects Buona's flexibility in managing its franchise network and dealing with unforeseen circumstances that may arise during the development process. For a prospective franchisee, this means that even with a development agreement, there's no guarantee of being offered the opportunity to open every potential location within the development area. Factors outside of the franchisee's control, such as lease negotiations or agreements with other parties, could impact their ability to expand.

It is important for a prospective Buona franchisee to understand that the right of first refusal for additional locations is subject to these limitations. Franchisees should carefully consider the potential for such restrictions and discuss these possibilities with Buona during the due diligence process. Understanding these limitations is crucial for making informed decisions about the development agreement and managing expectations for future expansion opportunities.