Does the Buona franchise agreement define what constitutes 'moral turpitude'?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisee, or any of its shareholders, members, managers, partners, officers, directors or guarantors, is indicted for, convicted of, or pleads guilty to a felony, a crime involving moral turpitude, or any other crime or offense that Franchisor believes is reasonably likely to have an adverse effect on the System, the Marks, or the goodwill associated with the System and the Marks, or Franchisor's interest in the System or the Marks;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
The 2025 Buona Franchise Disclosure Document does not define what constitutes 'moral turpitude.' However, the document does state that a franchisee, or any of its shareholders, members, managers, partners, officers, directors or guarantors, being indicted for, convicted of, or pleading guilty to a crime involving moral turpitude can be grounds for adverse action by Buona.
Specifically, if any of the aforementioned parties associated with the Buona franchise are involved in a crime of moral turpitude, Buona has the right to take action if it believes the crime is reasonably likely to have an adverse effect on the Buona system, the marks, or the goodwill associated with the system and the marks, or Buona's interest in the system or the marks.
Since the term 'moral turpitude' is not defined within the FDD, prospective franchisees should seek clarification from Buona regarding what specific actions or crimes would be considered 'moral turpitude' under the franchise agreement. Understanding Buona's interpretation of this term is crucial, as it directly relates to potential grounds for termination or other penalties under the agreement.