Is a Buona franchisee authorized to make any contract, agreement, warranty, or representation on behalf of the franchisor?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.1 Independent Contractor. This Agreement does not establish Franchisee as an agent, legal representative, joint venturer, partner, joint employer, employee or servant of Franchisor for any purpose whatsoever, and Franchisor shall not be construed to be jointly liable for any of Franchisee's or its employees' acts or omissions under any circumstances. Franchisee is solely responsible for the dayto-day operation of the Franchised Business. It is understood and agreed that Franchisee is an independent contractor and is in no way authorized to make any contract, agreement, warranty, or representation on behalf of Franchisor. The parties further agree that this Agreement does not create any fiduciary relationship between them. During the Term and any extension hereof, Franchisee agrees to take such action as Franchisor deems reasonably necessary for Franchisee to inform and hold itself out to the public, its employees and suppliers as an independent contractor operating the Franchised Business pursuant to a franchise from Franchisor. Franchisee shall prominently display, by posting of a sign within public view on or in the premises of the Franchised Business, and on any stationery, forms and promotional material a statement that clearly indicates that the Franchised Business is independently owned and operated by Franchisee as a franchisee of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee operates as an independent contractor and is not authorized to make any contract, agreement, warranty, or representation on behalf of Buona. This is a standard practice in franchising, designed to protect the franchisor from liabilities arising from the franchisee's actions.
This arrangement means that the franchisee has sole responsibility for the day-to-day operations of their franchised business. Buona will not be held jointly liable for any acts or omissions by the franchisee or their employees. The franchisee is also responsible for informing the public, employees, and suppliers that they are an independent contractor operating under a franchise from Buona.
To ensure clarity, the franchisee must prominently display a sign within the premises of the franchised business and on any stationery, forms, and promotional material, indicating that the business is independently owned and operated as a franchisee of Buona. This helps to avoid any confusion about the relationship between the franchisee and Buona, reinforcing the independent nature of the franchise operation.