For a Buona franchise, what document must all persons who own any interest in the Entity sign to guarantee the Franchisee's performance?
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.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, all shareholders, officers, directors, members, managers, partners, and guarantors must sign Buona's standard Nondisclosure and Noncompetition Agreement. This agreement is an exhibit to the Franchise Disclosure Document and may be updated in the Manual.
This requirement ensures that all individuals with significant involvement in the franchise operation are bound by confidentiality and non-competition obligations. These individuals must sign the agreement before performing any work at the Franchised Business or accessing Buona's proprietary information.
A copy of all signed agreements must be delivered to Buona within one week of their execution. This allows Buona to maintain records and ensure compliance with these critical protective measures.