What document, attached as Exhibit D, must a Buona franchisee complete and update throughout the term?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to the opening of the Franchised Business, any individual signing as franchisee shall establish a corporation, limited liability company, general partnership or limited partnership ("Entity"), to own and operate the Franchised Business and shall assign this Agreement to the Entity. Franchisee's owners, shareholders, officers, directors, members, managers and partners (or persons holding comparable positions in non-corporate entities) shall be referred to herein as "Principals". Franchisee must complete and update throughout the Term, as necessary, the "Statement of Ownership" attached as Exhibit D, and:
- (a) All persons who own any interest in the Entity must guaranty Franchisee's performance under this Agreement by signing the "Guaranty and Assumption of Franchisee's Obligations" attached as Exhibit E;
- (b) Franchisee shall provide to Franchisor a resolution signed by all shareholders,
directors, members, managers or partners, as appropriate, designating the principal contact for the Entity and Franchisee. This principal contact must be a controlling shareholder, managing member or general partner. This representative shall have the authority to speak for and bind Franchisee in all matters pertaining to this Agreement, and all matters regarding the Franchised Business;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees must complete and update the "Statement of Ownership," which is attached as Exhibit D, throughout the term of the franchise agreement. This document requires franchisees to disclose all individuals or entities owning an interest in the franchisee entity.
Furthermore, all individuals who own any interest in the franchisee entity must sign the "Guaranty and Assumption of Franchisee's Obligations," which is attached as Exhibit E. Additionally, the franchisee must provide a resolution signed by all shareholders, directors, members, managers, or partners, designating a principal contact for the entity. This principal contact must be a controlling shareholder, managing member, or general partner, authorized to represent and bind the franchisee in all matters pertaining to the agreement and the franchised business.
This requirement ensures that Buona maintains clear records of the ownership and management structure of each franchise. It also allows Buona to have a designated point of contact for each franchise and ensures that all owners are committed to fulfilling the obligations of the franchise agreement. For a prospective franchisee, this means carefully documenting and maintaining accurate ownership information and ensuring that all involved parties are aware of their responsibilities and obligations under the franchise agreement.