What actions related to the Noncompetition and Nondisclosure Agreement can lead to termination of the Buona franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.4 Nondisclosure and Noncompetition Agreement*.* Franchisee must have its shareholders, officers, directors, members, managers, partners, guarantors, supervisory and principal employees, including managers and assistant managers (as a condition to their employment), anyone Franchisee may choose to send to training, and anyone who has access to the Manual or any of Franchisor's proprietary information or Confidential Information, execute Franchisor's standard Nondisclosure and Noncompetition Agreement (which is an exhibit to the Franchise Disclosure Document and as may be updated in the Manual) before performing any work at the Franchised Business or otherwise having access to Franchisor's proprietary information.
A copy of all the signed agreements shall be delivered to Franchisor within one (1) week of their execution.
The failure of Franchisee to obtain execution of
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees must ensure that certain individuals associated with their business sign Buona's standard Nondisclosure and Noncompetition Agreement. These individuals include shareholders, officers, directors, members, managers, partners, guarantors, supervisory and principal employees (including managers and assistant managers), anyone the franchisee sends to training, and anyone with access to the Manual or Buona's proprietary or confidential information. These individuals must sign the agreement before performing any work at the Franchised Business or accessing Buona's proprietary information.
Franchisees must provide Buona with copies of all signed agreements within one week of execution. Failure to obtain these signed agreements from the specified individuals can result in the termination of the Buona franchise agreement.
Buona also has the right to seek injunctions and orders of specific performance in court to enforce the non-disclosure and non-competition obligations outlined in the franchise agreement. This means Buona can take legal action to prevent a franchisee from violating these terms, which could ultimately lead to the termination of the franchise agreement if the franchisee does not comply.