Is the Buona franchisee's license with respect to the marks exclusive?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee understands and agrees that its license with respect to the Marks is non-exclusive and that Franchisor has and retains the sole right under this Agreement:
(a) To grant other licenses for the Marks, in addition to those licenses already granted to existing franchisees;
(b) To develop and establish other franchise systems for the same, similar, or different products or services utilizing proprietary marks not now or hereafter designated as part of the System, and to grant licenses thereto, without providing Franchisee any such rights;
(c) To develop and establish other systems for the sale, at wholesale or retail, of similar or different products utilizing the same or similar Marks, without providing Franchisee any such rights; and
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee's license to use the Marks is non-exclusive. Buona retains the right to grant other licenses for the Marks to additional franchisees. This means that other franchisees can be authorized to use the same Marks.
Buona also retains the right to develop and establish other franchise systems, even for similar or identical products and services, using different proprietary marks. They can grant licenses to these new systems without providing any rights to the existing Buona franchisee. Additionally, Buona can establish other systems for selling similar products at wholesale or retail, using the same or similar Marks, without providing any rights to the franchisee.
This non-exclusive arrangement has important implications for prospective franchisees. It means that Buona can expand its brand presence through various channels and systems, potentially increasing competition for the franchisee. While this could broaden overall brand recognition, it also carries the risk of diluting the franchisee's market share or creating direct competition within the same geographic area. The franchisee should carefully consider these factors and evaluate the potential impact on their business before investing in a Buona franchise.