Within how many months of the execution of the Buona franchise agreement must a franchisee obtain site approval for a location requiring ground up construction?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Franchisee fails to obtain site approval for the Franchised Business within six (6) months of the date of the execution of this Agreement for a location requiring ground up construction and within four (4) months of the date of the execution of this Agreement for an existing location as required by Section 6.2; or Franchisee fails to open the Franchised Business with Franchisor's approval as required in Section 6.5 within twelve (12) months of Franchisor's written approval of the site for the Franchised Business for a ground up construction or within six (6) months of Franchisor's written approval of the site for an existing location.
However, Franchisor may in its sole discretion extend this period for matters not within control of Franchisee or for other mutually agreed upon grounds;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must obtain site approval within six months of the franchise agreement's execution if the location requires ground-up construction. For existing locations, the timeframe is shorter, at four months.
Buona also stipulates consequences for failing to meet these deadlines. If a franchisee does not secure site approval within the specified timeframe, Buona has the right to terminate the franchise agreement. However, Buona may extend the deadline if the delays are due to factors outside the franchisee's control or other mutually agreed-upon reasons.
Furthermore, after the site is approved, the franchisee has a limited time to open the business. For ground-up construction, the franchisee must open within twelve months of written site approval. For existing locations, the opening timeframe is six months from site approval. These timelines are important for prospective franchisees to consider, as failure to meet them could lead to termination of the franchise agreement by Buona.