What agreement must each owner of the Franchisee entity sign for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
If at any time you propose that the Franchised Business to be operated or managed by an entity or individual other than Franchisee, we reserve the right to review and approve the operating or managing entity or individual and to require and approve an operating or management agreement prior to such party's assumption of operations. We may reject the operating entity, the individual operator or the
operating or management agreement in our discretion. If approved by us, the operating entity and/or individual must agree in writing to comply with all of Franchisee's obligations under the Franchise Agreement as though such party were the franchisee designated therein, on such form as may be designated by us. The operation of the Franchised Business by any party other than Franchisee, without our prior written consent, is a default of the Franchise Agreement for which we may terminate the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 51–52)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if the Franchised Business is to be operated or managed by an entity or individual other than the Franchisee, that entity or individual must agree in writing to comply with all of the Franchisee's obligations under the Franchise Agreement. This agreement ensures that regardless of who is managing the Buona franchise, they are legally bound to uphold the standards and requirements set forth in the original Franchise Agreement. This agreement must be in a form designated by Buona.
Buona retains the right to review and approve any operating or managing entity or individual, as well as the operating or management agreement itself. This approval process allows Buona to maintain control over who is running the franchise and to ensure that they are qualified and committed to the brand's standards. Buona may reject any proposed operating entity, individual operator, or management agreement at their discretion.
The operation of the Franchised Business by any party other than the Franchisee, without Buona's prior written consent, constitutes a default of the Franchise Agreement. This unauthorized operation can lead to the termination of the Franchise Agreement, highlighting the importance of adhering to Buona's approval process and maintaining transparency in the management structure of the franchise.