factual

Does Buona assume liability to individuals or entities who are not parties to the franchise agreement due to approvals, advice, or services provided to the franchisee?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 13.6 No Liability to Others; No Other Beneficiaries**.** We will not, because of this Agreement or by virtue of any approvals, advice or services provided to you, be liable to any person or legal entity who is not a party to this Agreement, and no other party will have, or is intended to have, any rights because of this Agreement.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, Buona will not be liable to any person or legal entity who is not a party to the Franchise Agreement because of the agreement itself or by virtue of any approvals, advice, or services provided to the franchisee. Furthermore, no other party will have, or is intended to have, any rights because of the Franchise Agreement. This clause clarifies that the agreement is solely between Buona and the franchisee, and it protects Buona from claims by third parties who might allege they were harmed by the franchise relationship or the services Buona provides to the franchisee.

This provision is a standard risk-management measure in franchising. It ensures that Buona is not exposed to liability from customers, suppliers, landlords, or other parties who interact with the franchisee's business. The franchisee is responsible for their own actions and business dealings, and Buona's involvement in advising or approving certain aspects of the franchise operation does not create a basis for third-party claims against Buona.

For a prospective Buona franchisee, this means they cannot rely on the franchise agreement to create rights for other parties. The franchisee should understand that they are independently responsible for managing their business and ensuring that their actions do not create liabilities for Buona. This clause reinforces the importance of the franchisee operating their business in a legally compliant and responsible manner.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.