Can a Buona franchisee designate an employee or agent to manage the Franchised Business instead of managing it themselves?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) Franchisee and its manager(s) comply with Franchisor's then-current training requirements and attend such refresher training classes as Franchisor deems necessary.
Upon request by Franchisee's executor, administrator, or personal representatives, Franchisor, in its sole discretion, may agree to enter upon the Premises and exercise complete authority with respect to the operation of the Franchised Business until such time as Franchisee's executor, administrator or personal representative transfers Franchisee's interest in the Franchised Business as provided herein. Franchisee acknowledges and agrees that Franchisor's agent or other representative designated by Franchisor may take over, control and operate the Franchised Business, that Franchisee shall pay Franchisor the then-current published fee for such management service, plus all travel expenses, room and board and other expenses reasonably incurred by such agent or representative so long as Franchisor is operating the Franchised Business. Franchisee further acknowledges that if Franchisee temporarily operates the Franchised Business on Franchisee's behalf under this Paragraph 15.7, Franchisee will indemnify and hold harmless Franchisor and Franchisor's agent or representative respecting any and all claims arising out of Franchisor's operation of the Franchised Business under this Paragraph 15.7. Nothing herein shall require Franchisor to operate the Franchised Business upon the request of Franchisee's executor, administrator or personal representative.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
The 2025 Buona Franchise Disclosure Document does not explicitly state whether a franchisee can designate an employee or agent to manage the franchised business in their place. However, the document does state that the franchisee and its manager(s) must comply with Buona's training requirements and attend refresher courses as deemed necessary by Buona. This implies that a manager can be appointed to oversee the daily operations, but they must meet Buona's standards.
Additionally, the FDD states that in the event of the franchisee's death or incapacitation, Buona may, at its discretion, appoint an agent or representative to take over and operate the franchised business. The franchisee's estate would be responsible for covering the costs associated with this management service, including fees, travel expenses, and room and board. This highlights Buona's ability to step in and manage the business under specific circumstances, suggesting that while not explicitly stated, some form of management delegation might be possible with Buona's approval.
To fully understand Buona's policy on designating a manager or agent, a prospective franchisee should seek clarification from the franchisor. Specifically, they should inquire about the conditions under which a manager can be appointed, the level of authority a manager can have, and the training and qualifications required for such a role. This will help the franchisee understand their obligations and the extent to which they can delegate management responsibilities while still adhering to Buona's standards and maintaining control over their investment.