What must a Buona franchisee provide to the franchisor to designate the principal contact for the entity?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.1 Ownership of Franchisee. Prior to the opening of the Franchised Business, any individual signing as franchisee shall establish a corporation, limited liability company, general partnership or limited partnership ("Entity"), to own and operate the Franchised Business and shall assign this Agreement to the Entity. Franchisee's owners, shareholders, officers, directors, members, managers and partners (or persons holding comparable positions in non-corporate entities) shall be referred to herein as "Principals". Franchisee must complete and update throughout the Term, as necessary, the "Statement of Ownership" attached as Exhibit D, and:
- (a) All persons who own any interest in the Entity must guaranty Franchisee's performance under this Agreement by signing the "Guaranty and Assumption of Franchisee's Obligations" attached as Exhibit E;
- (b) Franchisee shall provide to Franchisor a resolution signed by all shareholders,
directors, members, managers or partners, as appropriate, designating the principal contact for the Entity and Franchisee. This principal contact must be a controlling shareholder, managing member or general partner. This representative shall have the authority to speak for and bind Franchisee in all matters pertaining to this Agreement, and all matters regarding the Franchised Business;
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, general partnership, or limited partnership, they must provide Buona with a resolution. This resolution needs to be signed by all shareholders, directors, members, managers, or partners, as applicable. The resolution should clearly designate the principal contact person for the franchisee entity.
This principal contact must hold a significant position within the franchisee's entity, specifically a controlling shareholder, managing member, or general partner. This requirement ensures that the designated contact has sufficient authority to represent and bind the franchisee in all dealings with Buona.
The designated principal contact will serve as the main point of communication between Buona and the franchisee. This individual will have the authority to make decisions and commit the franchisee to obligations under the Franchise Agreement. Therefore, it is crucial for franchisees to carefully select a principal contact who is knowledgeable about the business and has the power to act on behalf of the entity.