Who controls litigation related to Buona's proprietary information?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately tell us if you learn about unauthorized use of this proprietary information. We are not obligated to take any action, but we will respond to this information as we deem appropriate. We will control any litigation related to the proprietary information. We will indemnify you against losses claimed by a third party concerning your authorized use of this information.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 50–51)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona retains control over any litigation related to its proprietary information. This means that if there is a legal dispute concerning the unauthorized use of Buona's trade secrets or other proprietary assets, Buona, not the franchisee, will direct the legal strategy and proceedings. However, Buona is not obligated to take any action.
This arrangement has important implications for a prospective Buona franchisee. While the franchisee is required to inform Buona of any unauthorized use of proprietary information, the franchisee does not have the authority to initiate legal action independently. This could be beneficial to the franchisee because Buona will handle the legal costs and strategy.
Buona also commits to indemnify franchisees against losses claimed by a third party concerning the franchisee's authorized use of Buona's proprietary information. This means that if a franchisee is sued for using Buona's information in the way they were instructed, Buona will cover the franchisee's losses resulting from the lawsuit.