Does the Buona franchise agreement require the franchisee to present themselves to the public as an independent contractor?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
XIX. RELATIONSHIP OF THE PARTIES AND INDEMNIFICATION
- 19.1 Independent Contractor. This Agreement does not establish Franchisee as an agent, legal representative, joint venturer, partner, joint employer, employee or servant of Franchisor for any purpose whatsoever, and Franchisor shall not be construed to be jointly liable for any of Franchisee's or its employees' acts or omissions under any circumstances. Franchisee is solely responsible for the dayto-day operation of the Franchised Business. It is understood and agreed that Franchisee is an independent contractor and is in no way authorized to make any contract, agreement, warranty, or representation on behalf of Franchisor. The parties further agree that this Agreement does not create any fiduciary relationship between them. During the Term and any extension hereof, Franchisee agrees to take such action as Franchisor deems reasonably necessary for Franchisee to inform and hold itself out to the public, its employees and suppliers as an independent contractor operating the Franchised Business pursuant to a franchise from Franchisor. Franchisee shall prominently display, by posting of a sign within public view on or in the premises of the Franchised Business, and on any stationery, forms and promotional material a statement that clearly indicates that the Franchised Business is independently owned and operated by Franchisee as a franchisee of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchise agreement stipulates that franchisees must present themselves as independent contractors. Specifically, the agreement states that the franchisee is not an agent, legal representative, joint venturer, partner, joint employer, employee, or servant of Buona for any purpose. Buona will not be held jointly liable for the franchisee's or their employees' actions or omissions. The franchisee is solely responsible for the day-to-day operations of their franchised business.
To ensure clarity, Buona requires franchisees to take actions necessary to inform the public, employees, and suppliers that they are independent contractors operating under a franchise agreement with Buona. This includes prominently displaying a sign within public view on the premises of the franchised business, as well as on any stationery, forms, and promotional material. The statement must clearly indicate that the business is independently owned and operated by the franchisee as a franchisee of Buona.
This requirement is typical in franchising, as it reinforces the legal separation between the franchisor and franchisee. It protects Buona from potential liabilities arising from the franchisee's business operations and clarifies the independent nature of the franchisee's business. Franchisees should be aware of this requirement and ensure they comply with Buona's directives regarding how they present themselves to the public.