For a Buona franchise, under what conditions can the Entity engage in other businesses besides the Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall use its best efforts to develop and promote the Franchised Business.
All Buona products must be sold by Franchisee only from the Approved Location.
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.
- 9.6 Website.
Franchisor and its affiliate have developed and maintain a website relating to the Buona Businesses (the "Buona Website").
Franchisor and its affiliates may market and sell from the Buona Website
various products and services worldwide that may compete with Franchisee and other franchisees within and outside the Protected Area. The Buona Website as it may be developed and changed from time to time is Franchisor's sole property or the sole property of its affiliate. Franchisor may provide to Franchisee a page on or linked to the Buona Website.
9.7 National Accounts**.** Franchisor may, but is not obligated to, develop various National Accounts under a National Accounts Program, for specific services such as catering.
Franchisor, in its sole discretion, shall determine the best method of pursuing, negotiating with and servicing National Accounts, and shall establish the terms for each National Account contract in its sole discretion, based on the needs of the National Account and its customers, Franchisor, the System and the Franchisor's franchisees.
A "National Account" as used herein is a business, institution, governmental agency or other person or entity that either itself or through common ownership, association or independent contractors, has multiple locations in a number of geographic areas that fall within multiple franchise territories, has ongoing demands for products and services that in a number of geographic areas or that exceed the capability of any single Franchised Business, and/or prefers a single contact in order to control pricing, billing, customer satisfaction, and/or similar requirements.
In order to participate in the National Accounts Program, Franchisee must (i) be and remain in compliance under this Agreement, and (ii) agree to comply with Franchisor's published standards, policies and procedures for participation in the National Accounts Program as they may be modified and supplemented from time to time.
Further, in order to provide services to a particular National Account, Franchisee must comply with the requirements of that particular National Account.
Franchisee shall have the right to decline participation in the National Accounts Program or with respect to a particular National Account.
Regardless of any other provisions of this Agreement, Franchisor grants to Franchisee no territorial rights of any kind whatsoever in connection with the National Accounts Program.
As used in this Agreement, "Digital Marketing" means the integrated marketing services used to attract, engage and convert customers online**.** Digital Marketing utilizes multiple channels such as content marketing, influencer marketing, SEO, social media and online advertising to help brands connect with customers.
(b) In connection with any Website, Social Media and/or Digital Marketing, Franchisee agrees as follows:
(i) Franchisee is strictly prohibited from establishing or maintaining any Websites, Social Media accounts or domain names which incorporate any of the Marks, name or initials into its web address.
Franchisee is prohibited from establishing websites or domain names linking to Franchisor's websites without the prior written authorization of Franchisor.
(ii) Franchisor will have the sole right to create, establish, own, and control the Buona Website and any page for Franchisee's Franchised Business linked to the Buona Website.
(iii) Franchisor will have the sole right to create, establish, own, and monitor all Social Media postings for Franchisee's Franchised Business.
Franchisee may participate in the content and maintenance of Social Media for Franchisee's Franchised Business, only in accordance with Franchisor's guidelines, specifications, standards, policies and procedures on Social Media that Franchisor may issue from time to time in the Manual or otherwise, and subject to Franchisor's right to alter or delete pos
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
Based on the 2025 Buona Franchise Disclosure Document, a franchisee is expected to dedicate their best efforts to developing and promoting the franchised Buona business. The franchisee is generally restricted from selling Buona products through other distribution channels, such as the internet or direct marketing, outside of the approved location without prior written consent from Buona. This consent can be withheld at Buona's discretion.
Buona may develop National Accounts programs for specific services like catering, and franchisees can participate if they are compliant with the franchise agreement and Buona's standards for the program. However, franchisees have the right to decline participation in the National Accounts Program or with respect to a particular National Account. Buona retains the right to market and sell products and services through its website, potentially competing with franchisees.
Furthermore, franchisees are prohibited from using the Buona marks or name in any website, social media account, or domain name without authorization. Buona maintains control over the Buona Website and social media postings related to the franchised business, with franchisees only able to participate in content and maintenance according to Buona's guidelines. These restrictions ensure that the franchisee's primary focus remains on the franchised Buona business and that all marketing and sales efforts align with Buona's overall strategy and brand standards.