Under what conditions is Buona obligated to execute the Franchise Agreement with a franchisee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
We will be obligated to execute the Franchise Agreement only if (i) you continue to maintain the requisite knowledge, experience, skills, and financial resources to perform as a franchisee, (ii) you are in compliance with this Agreement, including but not limited to compliance with the Development Schedule and in compliance with the in-term covenants set forth in Paragraph 6.4, (iii) you (and/or an affiliate) are in compliance any and all existing Franchise Agreements between us.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona is obligated to execute the Franchise Agreement if the franchisee meets certain conditions. These conditions include maintaining the necessary knowledge, experience, skills, and financial resources to operate as a franchisee.
Additionally, the franchisee must be in full compliance with the Development Agreement, including adherence to the Development Schedule and the in-term covenants outlined in Paragraph 6.4 of the agreement. Furthermore, the franchisee, or any affiliated entity, must be in compliance with all existing Franchise Agreements with Buona.
These stipulations ensure that Buona only enters into franchise agreements with individuals or entities that are well-prepared and committed to upholding the brand's standards and contractual obligations. This protects the integrity of the Buona brand and the interests of existing franchisees within the system.