What criminal convictions of a Buona franchisee can lead to termination of the franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
or guarantors, is indicted for, convicted of, or pleads guilty to a felony, a crime involving moral turpitude, or any other crime or offense that Franchisor believes is reasonably likely to have an adverse effect on the System, the Marks, or the goodwill associated with the System and the Marks, or Franchisor's interest in the System or the Marks; or
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchise agreement can be terminated if the franchisee, or their guarantors, are indicted for, convicted of, or plead guilty to a felony. This also applies to crimes involving moral turpitude.
Additionally, Buona can terminate the agreement if the franchisee is involved in any other crime or offense that Buona believes is reasonably likely to have an adverse effect on the franchise system. This includes the brand's trademarks, goodwill, or Buona's interest in the system or the marks.
These terms are fairly standard in franchise agreements, as franchisors need to protect their brand and reputation. Franchisees should be aware that any criminal activity, even if seemingly unrelated to the business, could potentially lead to the termination of their franchise agreement.