Does the Buona franchise agreement allow the franchisor to update the Nondisclosure and Noncompetition Agreement in the Manual?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.4 Nondisclosure and Noncompetition Agreement*.* Franchisee must have its shareholders, officers, directors, members, managers, partners, guarantors, supervisory and principal employees, including managers and assistant managers (as a condition to their employment), anyone Franchisee may choose to send to training, and anyone who has access to the Manual or any of Franchisor's proprietary information or Confidential Information, execute Franchisor's standard Nondisclosure and Noncompetition Agreement (which is an exhibit to the Franchise Disclosure Document and as may be updated in the Manual) before performing any work at the Franchised Business or otherwise having access to Franchisor's proprietary information.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchise agreement requires franchisees to ensure that certain individuals, such as shareholders, officers, directors, managers, employees, and anyone with access to the Manual or Buona's proprietary information, execute Buona's standard Nondisclosure and Noncompetition Agreement. This agreement is an exhibit to the Franchise Disclosure Document and, importantly, may be updated in the Manual.
This means that Buona retains the right to modify the terms of the Nondisclosure and Noncompetition Agreement through updates to the Manual. These updates could potentially broaden the scope of restrictions on franchisees and their personnel, impacting their activities both during and after the franchise term. Franchisees are responsible for ensuring all relevant parties sign the most current version of this agreement.
For a prospective Buona franchisee, this highlights the importance of carefully reviewing the initial Nondisclosure and Noncompetition Agreement and staying informed about any future changes. It would be prudent to discuss with Buona the circumstances under which these agreements might be updated and the potential implications of such changes. Understanding the scope and potential modifications to these agreements is crucial for assessing the long-term impact on the franchisee's business and personnel.