Must a designated management employee complete the Buona training program to devote full time energy to the Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
rmation as confidential.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
We require that one of your principal owners who has at least a 10% ownership interest in Franchisee will have supervisory responsibility over the Franchises Business. Your principal owner or one designated management employee who has attended and successfully completed our training program must devote full time energy and best efforts to the development, promotion, management and operation of the Franchised Business. The designated manager need not have any equity interest in the Franchisee entity.
If at any time you propose that the Franchised Business to be operated or managed by an entity or individual other than Franchisee, we reserve the right to review and approve the operating or managing entity or individual and to require and approve an operating or management agreement prior to such party's assumption of operations. We may reject the operating entity, the individual operator or the
operating or management agreement in our discretion. If approved by us, the operating entity and/or individual must agree in writing to comply with all of Franchisee's obligations under the Franchise Agreement as though such party were the franchisee designated therein, on such form as may be designated by us. The operation of the Franchised Business by any party other than Franchisee, without our prior written consent, is a default of the Franchise Agreement for which we may terminate the Franchise Agreement.
If you have entered into an Area Development Agreement, you will be permitted to have multiple managers for each of your Buona Businesses. We recommend that a designated manager devote substantial full-time and best efforts on a daily basis, in person, to the supervision and conduct of a Buona Business. Your designated manager must successfully complete our training program. Your designated manager need not have an ownership interest in the franchisee entity. If you replace a manager, the new manager must satisfactorily complete our training program.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 51–52)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, either a principal owner with at least a 10% ownership interest or a designated management employee must devote full-time energy to the Buona franchise. If the principal owner does not fulfill this role, the designated management employee must attend and successfully complete Buona's training program. The designated manager is not required to have any equity interest in the franchisee entity. This requirement ensures that someone with sufficient training and a vested interest is actively involved in the daily operations and management of the franchise.
For franchisees with an Area Development Agreement, multiple managers are permitted for each Buona business. Buona recommends that a designated manager devote substantial full-time effort daily, in person, to supervise and conduct the Buona business. This designated manager must also successfully complete the training program, regardless of ownership interest. If a manager is replaced, the new manager must also satisfactorily complete the training program.
Buona retains the right to review and approve any operating or managing entity or individual if the franchise is not operated or managed directly by the franchisee. These parties must agree in writing to comply with all obligations under the Franchise Agreement. Failure to obtain prior written consent from Buona for operation by another party constitutes a default of the Franchise Agreement, potentially leading to termination. This stringent oversight ensures that all operational aspects align with Buona's standards and procedures, regardless of who is managing the business.