What agreement must Buona franchisees have their supervisory and principal employees execute as a condition of their employment?
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.
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 their supervisory and principal employees, including managers and assistant managers, sign Buona's standard Nondisclosure and Noncompetition Agreement as a condition of their employment. This agreement is an exhibit to the Franchise Disclosure Document and may be updated in the Manual. The purpose of this requirement is to protect Buona's confidential information and prevent competition from individuals who have gained knowledge of Buona's business practices.
Buona franchisees must also ensure that anyone they send to training or anyone who has access to the Manual or Buona's proprietary or confidential information also executes this agreement. This broadens the scope of individuals bound by the agreement, ensuring that all those with access to sensitive information are subject to its terms. Franchisees are required to provide a copy of all signed agreements to Buona within one week of their execution, demonstrating the importance of timely compliance.
The Nondisclosure and Noncompetition Agreement is designed to safeguard Buona's interests by preventing individuals with knowledge of its operations from using that knowledge to compete against the franchise. This is a common practice in franchising, as franchisors seek to protect their brand and business model. The agreement likely contains provisions that restrict employees from working for competing businesses or disclosing confidential information during and after their employment with the Buona franchise. Prospective franchisees should carefully review the terms of the Nondisclosure and Noncompetition Agreement to understand the specific restrictions it imposes on their employees.