Under what condition will Buona not establish or grant another the right to establish a Buona Restaurant within the Protected Area?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
s outside of and apart from the operation of the Franchised Business at the Approved Location without Franchisor's prior written consent, which may be withheld by Franchisor in its sole discretion.
- 1.3 Protected Area. Subject to the terms and conditions of this Agreement and provided Franchisee or any of its affiliated companies is not otherwise in default of this Agreement or in default of any other agreement with Franchisor or with a parent, subsidiary or affiliate of Franchisor ("Affiliates"), Franchisor shall not establish, nor grant another the right to establish a Buona Restaurant during the Term, within the area described in Exhibit A of this Agreement (the "Buona Protected Area"), without Franchisee's prior written consent. The Buona Protected Area will be a geographic area around the Approved Location with a minimum people population of Sixty Thousand (60,000) if the Approved Location is in a non-urban location and a one-half (1/2) mile radius around the Approved Location if it is located in an urban area. Upon determination of the Approved Location, Franchisor and Franchisee shall complete and execute Exhibit A with a description of the Buona Protected Area. Franchisee is not granted a protected area or any exclusive rights relating to The Original Rainbow Cone portion of the Franchised Business.
- 1.4 Limitations to Protected Area.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona will not establish or grant another the right to establish a Buona Restaurant within a franchisee's protected area if the franchisee is in compliance with all agreements. Specifically, the franchisee must not be in default of the Franchise Agreement or any other agreement with Buona or its affiliates. This condition is subject to the terms and conditions outlined in the Franchise Agreement.
This protected area, as detailed in Exhibit A of the Franchise Agreement, is a geographic area around the Approved Location. The population within this area must have a minimum of 60,000 people if the location is non-urban. For urban locations, the protected area extends to a one-half mile radius around the Approved Location. The specifics of the Protected Area are determined and documented in Exhibit A, which both Buona and the franchisee must complete and execute upon the determination of the Approved Location.
However, this protection does not extend to certain 'Captive Locations' within the Protected Area. These locations include transportation facilities like airports and train stations, educational facilities such as schools and universities, institutional feeding facilities like hospitals and corporate cafeterias, and government institutions such as military bases. Buona retains the right to franchise or operate Buona Businesses and distribute products through any means within these Captive Locations, even if they fall within a franchisee's Protected Area. This means that while a franchisee has some territorial protection, Buona can still operate or franchise other locations within these specified venues.