What does the Buona franchise agreement define as the 'System'?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2 System.
Franchisee acknowledges that Franchisor and their respective affiliates own and control the distinctive plan for the establishment, operation, and promotion of a Franchised Business and all related methods of doing business, previously defined as the System, which include, but are not limited to, standards and specifications for Franchised Businesses, operational methods, food and preparation methods, products, supplies, equipment, marketing techniques, written promotional materials, advertising, and accounting systems, all of which constitute confidential information and trade secrets of Franchisor, and Franchisee acknowledges that Franchisor has valuable rights in and to this confidential information and trade secrets.
Franchisee additionally acknowledges that it has not acquired any right, title, or interest in the System, except for the right to use the System in the operation of the Franchised Business as governed by this Agreement and Franchisee is obligated to maintain the confidentiality of the System in accordance this Agreement.
Any improvements in or additions to the System, Franchisor's copyrighted materials, website or any other documents or information pertaining to or relating to the System or the Franchised Business, or any new trade names, trade and service marks, logos, or commercial symbols related to the Franchised Business (collectively, the "Improvements") conceived or developed by Franchisee shall become the property of Franchisor and/or Franchisor's affiliate.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the 'System' refers to the distinctive plan for establishing, operating, and promoting a franchised Buona business. This encompasses all related methods of conducting business.
The System includes standards and specifications for the franchised businesses, operational methods, food and preparation methods, products, supplies, equipment, marketing techniques, written promotional materials, advertising, and accounting systems. Buona considers all these elements confidential information and trade secrets.
Buona retains valuable rights to this confidential information and trade secrets. Franchisees only acquire the right to use the System to operate their franchised business as outlined in the franchise agreement. Franchisees must also maintain the confidentiality of the System as per the agreement. Any improvements or additions to the System conceived or developed by the franchisee become the property of Buona and/or its affiliates.