What action must a Buona franchisee take to inform the public that they are an independent contractor?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term and any extension hereof, Franchisee agrees to take such action as Franchisor deems reasonably necessary for Franchisee to inform and hold itself out to the public, its employees and suppliers as an independent contractor operating the Franchised Business pursuant to a franchise from Franchisor. Franchisee shall prominently display, by posting of a sign within public view on or in the premises of the Franchised Business, and on any stationery, forms and promotional material a statement that clearly indicates that the Franchised Business is independently owned and operated by Franchisee as a franchisee of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must take specific actions to inform the public, employees, and suppliers that they are an independent contractor operating under a franchise from Buona. This is to ensure clarity in the business relationship and to prevent any misrepresentation that could lead to Buona being held liable for the franchisee's actions or omissions.
The franchisee is required to prominently display a sign within public view on the premises of the franchised business. Additionally, this declaration of independent ownership must appear on any stationery, forms, and promotional material used by the franchisee. The statement should clearly indicate that the business is independently owned and operated by the franchisee as a franchisee of Buona.
This requirement is crucial for maintaining the distinction between Buona and its franchisees, protecting Buona from potential legal liabilities, and ensuring that customers and other stakeholders understand the nature of the business relationship. It also aligns with standard franchising practices, where franchisees operate as independent entities while adhering to the franchisor's brand standards and operational guidelines.