Under what condition can Buona terminate the franchise agreement if the Operating Owner fails to successfully complete the initial training?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
If, during the initial training program, Franchisor determines, in its sole discretion, that Franchisee's Operating Owner did not successfully complete the initial training, Franchisee has the right to require the Operating Owner to attend and successfully complete additional training or to require a different owner to be designated Operating Owner to attend and successfully complete training, and/or Franchisor has the right to terminate this Agreement, effective upon delivery of written notice thereof to Franchisee. If Franchisee is terminated by Franchisor for failure to successfully complete the initial owner training, Franchisor agrees to refund ten percent (10%) of the initial franchise fee paid upon Franchisee's execution and delivery to Franchisor of a termination agreement and general release of all claims in a form satisfactory to Franchisor
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the right to terminate the franchise agreement if the Operating Owner does not successfully complete the initial training program. This determination is made at Buona's sole discretion. However, before Buona can terminate the agreement, the franchisee has the option to have the Operating Owner attend additional training or designate a different owner to attend and successfully complete the training.
If Buona terminates the franchise agreement due to the failure of the initial owner training, Buona will refund ten percent (10%) of the initial franchise fee. This refund is contingent upon the franchisee executing and delivering a termination agreement and general release of all claims to Buona in a form satisfactory to them.
This clause protects Buona by ensuring that franchisees are adequately trained to maintain brand standards and operational efficiency. It also provides a limited financial remedy to the franchisee in the event of termination due to training issues, though the franchisee must sign a release of all claims to receive the refund. Prospective franchisees should carefully consider the training requirements and ensure their Operating Owner is prepared to meet Buona's standards to avoid potential termination and financial loss.