factual

After the Buona franchise agreement is terminated, what materials containing confidential information must the franchisee turn over to Buona Franchisor?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee understands that the Manual is loaned to Franchisee, and that at all times, the Manual remains the sole property of Franchisor.

The Manual may be provided in printed or electronic form and Franchisee agrees to return any printed copies of the Manual to Franchisor or destroy any files containing the Manual upon the termination of this Agreement or at times as may otherwise be directed by Franchisor.

Source: Item 23 — RECEIPTS (FDD pages 78–356)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee is obligated to either return any printed copies of the Manual to Buona or destroy any electronic files containing the Manual. The Manual contains information on Buona's processes, services, products, know-how, and the System, all of which are considered secret, unique, and confidential, containing trade secrets and proprietary material. The franchisee's knowledge of operating the Franchised Business is derived from information disclosed by Buona, with certain information being proprietary, confidential, and considered a Trade Secret.

Buona emphasizes the importance of maintaining the absolute confidentiality of all Trade Secrets both during and after the term of the franchise agreement. Franchisees are prohibited from using any such information in any other business or manner not specifically authorized or approved in writing by Buona. The franchisee must prevent unauthorized disclosure of the Manual's contents to any person, as such disclosure would cause irreparable harm to Buona and its System.

This obligation ensures that Buona retains control over its proprietary information and trade secrets, preventing former franchisees from using this knowledge to compete against the Buona system. This is a standard practice in franchising, as the protection of intellectual property is crucial for maintaining the brand's competitive advantage and consistency across all franchise locations. Prospective franchisees should understand the scope of confidential information and the restrictions placed upon its use, both during and after the franchise term.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.