Under the Buona development agreement, what must a developer do at least 30 days before executing a Franchise Agreement for a restaurant?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 You must develop each Buona Restaurant in the following manner:
- (a) By giving us written notice of your intention to begin development of the next Buona Restaurant at least thirty (30) days before the execution of the Franchise Agreement for the applicable restaurant;
- (b) By submitting to us a description of the proposed site, together with a letter of intent in a form approved by us or other evidence satisfactory to us which confirms your favorable prospects for obtaining the proposed site;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a developer who has signed a Development Agreement must fulfill certain obligations before executing a Franchise Agreement for a restaurant. Specifically, at least 30 days before executing the Franchise Agreement for the applicable restaurant, the developer must provide Buona with written notice of their intention to begin development of the next Buona restaurant.
In addition to providing written notice, the developer must submit a description of the proposed site. This description must be accompanied by a letter of intent in a form approved by Buona, or other evidence satisfactory to Buona, that confirms favorable prospects for obtaining the proposed site.
These requirements ensure that Buona is informed and approves the developer's plans for each new restaurant location before the Franchise Agreement is finalized. This allows Buona to maintain control over the brand's expansion and ensure that new locations meet their standards and have a high likelihood of success.