For a Buona franchise, what is the definition of 'Principals'?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.4 Nondisclosure and Noncompetition Agreement*.* Franchisee must have its shareholders, officers, directors, members, managers, partners, guarantors, supervisory and principal employees, including managers and assistant managers (as a condition to their employment), anyone Franchisee may choose to send to training, and anyone who has access to the Manual or any of Franchisor's proprietary information or Confidential Information, execute Franchisor's standard Nondisclosure and Noncompetition Agreement (which is an exhibit to the Franchise Disclosure Document and as may be updated in the Manual) before performing any work at the Franchised Business or otherwise having access to Franchisor's proprietary information.
A copy of all the signed agreements shall be delivered to Franchisor within one (1) week of their execution.
The failure of Franchisee to obtain execution of
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the term 'Principals' includes shareholders, officers, directors, members, managers, partners, guarantors, supervisory and principal employees, including managers and assistant managers. These individuals are required to sign Buona's standard Nondisclosure and Noncompetition Agreement as a condition of their employment, before performing any work or accessing proprietary information.
This requirement ensures that all individuals with significant influence or access to confidential information are bound by the non-disclosure and non-competition terms. This is a common practice in franchising to protect the franchisor's trade secrets and business methods. The agreement aims to prevent these individuals from using the franchisor's confidential information to compete with Buona, either during their association with the franchise or for a specified period after their departure.
For a prospective Buona franchisee, this means they must ensure that all individuals falling under the definition of 'Principals' execute the Nondisclosure and Noncompetition Agreement. The franchisee is responsible for providing copies of these signed agreements to Buona within one week of their execution. Failure to obtain these agreements could result in a breach of the franchise agreement, potentially leading to penalties or termination of the franchise agreement.