For a Buona franchise, what are the requirements for the principal contact designated by the Franchisee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
VI. BUSINESS DEVELOPMENT AND OPENING; RELOCATION
- 6.1 Ownership of Franchisee. Prior to the opening of the Franchised Business, any individual signing as franchisee shall establish a corporation, limited liability company, general partnership or limited partnership ("Entity"), to own and operate the Franchised Business and shall assign this Agreement to the Entity. Franchisee's owners, shareholders, officers, directors, members, managers and partners (or persons holding comparable positions in non-corporate entities) shall be referred to herein as "Principals". Franchisee must complete and update throughout the Term, as necessary, the "Statement of Ownership" attached as Exhibit D, and:
- (a) All persons who own any interest in the Entity must guaranty Franchisee's performance under this Agreement by signing the "Guaranty and Assumption of Franc
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if the individual signing as franchisee plans to establish a corporation, limited liability company, general partnership, or limited partnership to own and operate the franchised business, they must assign the Franchise Agreement to that entity. The owners, shareholders, officers, directors, members, managers, and partners (or persons holding comparable positions in non-corporate entities) are referred to as "Principals".
Buona requires the franchisee to complete and update the "Statement of Ownership" (Exhibit D) throughout the term of the agreement. All individuals who own any interest in the entity must guarantee the franchisee's performance under the agreement by signing the "Guaranty and Assumption of Franc."
This means that Buona requires a personal guarantee from all owners of the franchise entity, ensuring they are all liable for the franchise's obligations. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract.