Is the Buona franchisee's license to use the Buona marks exclusive?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
For the Term (as defined in Section 2.1), Franchisor grants to Franchisee, and Franchisee accepts from Franchisor, a non-exclusive license to operate one Buona Business, and Franchisee accepts the obligation to operate the Buona Business during the Term, in the following general area:
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchise agreement grants the franchisee a non-exclusive license to operate a Buona Business. Specifically, the agreement states that the franchisee receives a "non-exclusive license to operate one Buona Business" for the duration of the term. This license is for a specific location that Buona must approve.
This means that Buona retains the right to grant licenses to other franchisees, or even operate its own company-owned locations, within the same general area as a franchisee's location. A franchisee's rights to use the Buona marks and system are limited to the approved location and in accordance with the franchise agreement terms.
This non-exclusive arrangement is a fairly standard practice in franchising. It allows Buona to expand its brand presence and market coverage without being restricted by exclusive territories. However, it also means that a Buona franchisee may face competition from other Buona outlets, which could impact their sales and profitability. Therefore, prospective franchisees should carefully consider the market potential and competitive landscape of their proposed location.