What are some examples of items that will promote or benefit all Buona businesses and the system?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's decisions or actions will be deemed to be the result of reasonable business judgment, even if other reasonable or even arguably preferable alternatives are available, if Franchisor's decision or action is intended, in whole or significant part, to promote or benefit the System and Buona Businesses generally, even if the decision or action also promotes Franchisor's financial or other individual interest.
Examples of items that will promote or benefit all Buona Businesses and the System include but are not limited to enhancing the value of the Marks, improving customer service and satisfaction, improving product quality, improving uniformity, enhancing or encouraging modernization and improving the competitive position of the System.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, decisions or actions made by Buona will be considered the result of reasonable business judgment if they are intended to promote or benefit the Buona system and its businesses generally. This holds true even if other alternatives exist, and even if the decision also benefits Buona's financial or individual interests.
Examples of actions that promote or benefit Buona businesses and the system include enhancing the value of the Marks, improving customer service and satisfaction, improving product quality, improving uniformity, enhancing or encouraging modernization and improving the competitive position of the System.
This clause indicates that Buona retains significant discretion in making business decisions, and franchisees must accept these decisions as long as they are intended to benefit the system as a whole. While Buona's decisions must be made with the intent to benefit the system, the agreement explicitly allows for the possibility that these decisions may also benefit Buona directly. This is a common clause in franchise agreements, as it allows the franchisor to adapt to changing market conditions and protect the overall brand.