Can Buona delegate its obligations under the Franchise Agreement to a third party?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
This delegation means that Buona can outsource certain responsibilities or rights it has under the agreement to another party. However, these third-party designees are obligated to perform the delegated functions in compliance with the original Franchise Agreement. This ensures that even if Buona delegates certain tasks, the standards and requirements outlined in the agreement must still be met.
For a prospective franchisee, this clause indicates that they may be dealing with entities other than Buona directly for certain aspects of the franchise relationship. It is important to understand which functions might be delegated and to ensure that these third parties are clearly accountable for meeting Buona's standards. This delegation clause is fairly standard in franchising, allowing franchisors to scale their support and operations effectively.