factual

Under what conditions might Buona extend the period for opening the franchised business?

Buona Franchise · 2025 FDD

Answer 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, a franchisee typically must open their location within a specific timeframe after site approval. For ground-up construction, the franchisee has twelve months, while for existing locations, they have six months from the date of written site approval from Buona. However, Buona retains the discretion to extend this opening period under certain conditions.

Buona may extend the opening 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 this extension is determined by Buona based on the specific circumstances. This flexibility acknowledges that unforeseen issues can arise during the development process, such as permitting delays, construction complications, or supply chain disruptions.

It's important to note that the FDD specifies other scenarios where Buona might consider factors outside the franchisee's control. For instance, if a location is damaged or destroyed, the franchisee has a limited time to seek approval for relocation or reconstruction, potentially influencing the opening timeline. These provisions suggest that Buona aims to work with franchisees facing legitimate hardships, but the ultimate decision to grant an extension remains at Buona's discretion. Prospective franchisees should discuss potential scenarios and extension policies with Buona during their due diligence.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.