Does Buona warrant that the obligations of the franchise agreement have been agreed to by or will be enforced against any of its other developers?

According to Buona's 2025 Franchise Disclosure Document, Buona does not guarantee that the obligations within the franchise agreement have been agreed to or will be enforced against its other developers. This means that as a franchisee, you cannot rely on Buona to ensure other developers are fulfilling their contractual duties.

This lack of warranty has several implications for prospective franchisees. It suggests that Buona does not take responsibility for the actions or compliance of other developers within the system. This could potentially lead to inconsistencies in brand standards, operational practices, or marketing efforts among different locations. Franchisees may find themselves at a disadvantage if other developers in the system are not held to the same standards.

Prospective franchisees should carefully consider this lack of warranty and conduct thorough due diligence to assess the potential impact on their investment. This may include researching the performance and compliance history of other Buona developers, evaluating the strength of Buona's oversight and enforcement mechanisms, and assessing the potential risks associated with inconsistent practices among franchisees. Understanding these factors can help franchisees make informed decisions and mitigate potential challenges.