Under what condition does Buona have the right to require a Buona franchisee to close its Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Food Borne Illness and other Public Health or Safety Issues**.** Franchisor has the right to require Franchisee to close its Franchised Business if Franchisor determines that Franchisee's Franchised Business has deficiencies relating to food safety and cleanliness or other public health and safety issues.
Franchisee may not reopen the Franchised Business until Franchisor has re-inspected the Franchised Business and determined that it meets Franchisor's standards.
In the event of an outbreak of a food borne illness, or any other public health or safety issue that potentially could negatively impact Franchisor's Marks and brand, Franchisee must immediately notify Franchisor of such event, but no later than the next day following the occurrence.
Further, Franchisee is strictly prohibited from speaking or communicating with the media in the event of an outbreak of a food borne illness or any other public health or safety issue,
whether at Franchisee's Franchised Business or at any other Buona Business. Franchisor has the right to be the sole spokesperson on these issues.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the right to mandate the closure of a franchised business if it determines that the location has deficiencies related to food safety, cleanliness, or other public health and safety issues. This is to protect the brand and image of all Buona businesses.
Following a closure, a Buona franchisee cannot reopen the business until Buona has re-inspected the location and confirmed that it meets the company's standards. In the event of a foodborne illness outbreak or any other public health or safety issue that could negatively impact Buona's brand, the franchisee must immediately notify Buona, no later than the day following the occurrence.
Furthermore, the franchisee is strictly prohibited from communicating with the media regarding such incidents, whether they occur at the franchisee's location or any other Buona business. Buona retains the right to be the sole spokesperson on these issues. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand reputation and ensure consistent messaging during crises.