Can Buona delegate its obligations under the Franchise Agreement to third parties?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.5 Delegation.
Franchisee agrees that Franchisor shall have the right to delegate to thirdparty designees, whether Franchisor's agents or independent contractors with whom Franchisor has contracted, the performance of any portion or all of Franchisor's obligations under this Agreement, and any right Franchisor has under this Agreement.
If Franchisor does so, such third-party designees will be obligated to perform the delegated functions for Franchisor in compliance with this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the right to delegate its obligations under the Franchise Agreement to third-party designees. These designees can be either Buona's agents or independent contractors with whom Buona has a contract.
If Buona chooses to delegate any of its obligations or rights, the third-party designees are required to perform those functions in compliance with the terms of the Franchise Agreement. This means that Buona can outsource certain responsibilities related to supporting franchisees, while still ensuring that the standards and requirements of the franchise system are maintained.
This delegation clause provides Buona with flexibility in managing its operations and support functions. It allows Buona to leverage external expertise or resources to fulfill its obligations to franchisees. For a prospective franchisee, this could mean interacting with different entities for various aspects of the franchise relationship, such as training, supply chain management, or marketing support. It is important for franchisees to understand that while Buona may delegate these functions, Buona remains ultimately responsible for ensuring that these obligations are met in accordance with the Franchise Agreement.