Is a Buona franchisee considered a third-party beneficiary under any contract between Buona and another entity?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
No Liability to Others; No Other Beneficiaries**.** We will not, because of this Agreement or by virtue of any approvals, advice or services provided to you, be liable to any person or legal entity who is not a party to this Agreement, and no other party will have, or is intended to have, any rights because of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchise agreement specifies that Buona will not be liable to any person or legal entity who is not a party to the agreement. Furthermore, the franchise agreement explicitly states that no other party will have, or is intended to have, any rights because of the agreement. This means that Buona franchisees are not considered third-party beneficiaries to any contracts Buona may have with other entities.
This provision clarifies that the franchise agreement is solely between the franchisee and Buona. It prevents third parties from claiming rights or benefits under the agreement. This is a common clause in franchise agreements to limit liability and ensure that only the parties directly involved in the agreement can enforce its terms.
For a prospective Buona franchisee, this means they cannot rely on any agreements Buona has with suppliers, vendors, or other third parties to claim any rights or benefits. Their rights are strictly limited to the terms outlined in their franchise agreement with Buona. This is a standard practice in franchising, as it allows the franchisor to manage its relationships with other entities without creating additional obligations to its franchisees.