Is Buona allowed to establish businesses that are franchised, licensed, or owned by the franchisor or its affiliates, even if they offer similar products and services under different trade names than Buona?

According to Buona's 2025 Franchise Disclosure Document, Buona retains the right to establish businesses that are franchised, licensed, or owned by the company or its affiliates. These businesses can be at any location Buona deems appropriate. Furthermore, these businesses can offer products or services similar to those under the Buona system, but under different trade names, trademarks, service marks, trade dress, or other commercial symbols.

This means that as a Buona franchisee, you may face competition from businesses owned or licensed by Buona itself, even if they operate under a different brand. This is a common practice in franchising, allowing franchisors to explore different market segments or geographic areas without being restricted by existing franchise agreements. However, it's important to understand that Buona is not obligated to provide you with any rights to these alternative systems.

Buona also has the right to use the Buona marks and other trademarks or service marks through alternate distribution channels such as supermarkets, wholesale sales, catalogs, direct marketing, the Internet, or similar electronic media. Additionally, Buona can acquire or be acquired by a company establishing businesses identical or similar to the Franchised Business, even if the other business operates, franchises, and/or licenses competitive businesses anywhere, including the Protected Area. These activities could potentially impact a franchisee's market share and revenue.

As a franchisee, you are generally restricted to marketing within your protected area and cannot engage in targeted marketing outside of it. This restriction aims to prevent confusion in the marketplace among Buona businesses. Therefore, it is crucial for prospective franchisees to carefully consider the potential impact of these competitive activities and marketing restrictions on their business when evaluating the Buona franchise opportunity.