Can a Buona franchisee decline participation in the National Accounts Program or with respect to a particular National Account?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Franchisee agrees that Franchisor and third parties designated by Franchisor may solicit prospective National Accounts located within Franchisee's Buona Protected Area in order to develop them as National Accounts.
Further, in the event that Franchisee declines to participate in the National Accounts Program, declines to service any National Account location within Franchisee's Protected Area, or are prohibited from providing services to the National Account location within Franchisee's Buona Protected Area pursuant to the standards, policies and procedures of the National Accounts Program or the requirements of a particular National Account, Franchisor, its affiliates or designated agents or other franchisees may provide services at National Account locations or to National Account customers located within Franchisee's Buona Protected Area without violating Franchisee's rights to the
Protected Area. Franchisee shall not be entitled to any compensation with respect to services provided to any National Account location or customer within Franchisee's Buona Protected Area after Franchisee has declined to provide such service or Franchisee is prohibited to provide such services pursuant to the standards, policies and procedures of the National Accounts Program or the contract with any particular National Account. If Franchisor will be providing administrative, billing and/or collection services with respect to any National Account, Franchisor has the right to charge Franchisee a reasonable administrative fee for such services.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee has the right to decline participation in the National Accounts Program or with respect to a particular National Account. However, Buona may solicit prospective National Accounts within the franchisee's protected area.
If a Buona franchisee declines to participate in the National Accounts Program or to service a National Account within their protected area, Buona, its affiliates, agents, or other franchisees can provide services to that National Account without violating the franchisee's protected area rights. In this case, the franchisee will not be entitled to any compensation for services provided to that National Account.
Buona determines the best method for pursuing, negotiating, and servicing National Accounts and establishes the terms for each National Account contract. To participate in the National Accounts Program, a franchisee must be in compliance with the Franchise Agreement and adhere to Buona's standards, policies, and procedures for the program and the requirements of the specific National Account.