Does the Buona franchise agreement restrict shareholders, officers, directors, members, managers, partners and guarantors from engaging in competitive activities during the term?

According to Buona's 2025 Franchise Disclosure Document, the franchise agreement does place restrictions on shareholders, officers, directors, members, managers, partners, and guarantors regarding competitive activities during the term of the agreement. Specifically, these individuals are prohibited from directly or indirectly engaging in competitive businesses. This restriction applies to actions taken by these individuals for themselves, on behalf of others, or in conjunction with any other person or entity.

This non-compete clause means that during the term of the franchise agreement, covered individuals associated with the Buona franchise cannot be involved in any competing business. This is designed to protect Buona's market position, trade secrets, and overall business interests. The restriction aims to prevent franchisees and related parties from using the knowledge and resources gained from the Buona franchise to benefit a competing venture.

It is important for prospective franchisees to fully understand the scope and implications of this non-compete clause. They should carefully review the franchise agreement and related documents to determine the specific activities that are considered competitive and the duration of the restriction. Franchisees should also ensure that all relevant parties, such as shareholders and managers, are aware of and agree to these restrictions before entering into the franchise agreement with Buona.