For a Buona franchise, can the Franchisor withhold approval for the Franchisee to engage in other businesses?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may not use other channels of distribution such as the internet, catalog sales, telemarketing or other direct marketing to make sales outside of and apart from the operation of the Franchised Business at the Approved Location without Franchisor's prior written consent, which may be withheld by Franchisor in its sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee needs prior written consent from Buona to use other distribution channels outside of their approved location. These channels include the internet, catalog sales, telemarketing, or other direct marketing methods. Buona has the sole discretion to withhold this consent.
This means that as a Buona franchisee, you are primarily limited to selling Buona products from your physical, approved location. If you want to expand your sales through online platforms or other direct marketing strategies, you must first obtain written approval from Buona. This approval is not guaranteed, as Buona can withhold it at their discretion.
This restriction is in place to ensure that Buona maintains control over its brand and distribution methods. It allows Buona to manage its image, quality control, and customer experience across all sales channels. While this may limit a franchisee's ability to independently explore additional revenue streams, it also protects the brand's reputation and consistency, which benefits all franchisees in the long run.
Prospective franchisees should consider this restriction when evaluating the Buona franchise opportunity. If you have strong ideas about utilizing online sales or other alternative distribution methods, you should discuss this with Buona during your due diligence to understand their specific criteria and potential for approval.