Under what conditions can a Buona franchisee relocate or reconstruct premises after damage?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
However, if, through no fault of Franchisee, the premises are damaged or destroyed by an event not within the control of Franchisee such that repairs or reconstruction cannot be completed within six (6) months thereafter, then Franchisee shall have thirty (30) days after such event in which to apply for Franchisor's approval to relocate the Franchised Business and/or reconstruct the premises, which approval shall not be unreasonably withheld, provided Franchisee is not then in default under this Agreement or any other agreement between Franchisee and Franchisor or any of its Affiliates, but may be conditioned upon the payment of an agreed minimum royalty to Franchisor during the period in which the Franchised Business is not in operation;
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee may be able to relocate the Franchised Business and/or reconstruct the premises if the premises are damaged or destroyed through no fault of the franchisee by an event not within their control, such that repairs or reconstruction cannot be completed within six months.
In this situation, the Buona franchisee has 30 days after the event to apply for Buona's approval to relocate and/or reconstruct. This approval will not be unreasonably withheld, provided the franchisee is not in default under the Franchise Agreement or any other agreement with Buona or its affiliates.
However, Buona may condition its approval upon the payment of an agreed minimum royalty during the period in which the Franchised Business is not in operation. This means that even if the franchisee is unable to operate due to the damage, they may still be required to pay royalties to Buona to maintain their franchise rights while relocating or reconstructing.