Can the full-time energy and best efforts obligation for a Buona franchisee be fulfilled by a designated management employee or approved agent?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.1 Franchisee's Best Efforts. Franchisee covenants that, during the Term, except as otherwise approved in writing by Franchisor, Franchisee or, alternatively, one designated management employee or approved agent if that employee or agent assumes primary responsibility for the operation of the Franchised Business, shall devote full time energy and best efforts to the development and promotion of the Franchised Business and to the management and operation of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee is generally expected to devote full-time energy and their best efforts to the development, promotion, management, and operation of the franchised business. However, Buona does provide an exception to this requirement.
Specifically, the franchisee can designate a management employee or an approved agent to assume primary responsibility for the operation of the franchised business, provided that the franchisor approves this arrangement in writing. This means that a franchisee is not necessarily required to be personally involved in the day-to-day operations, as long as a qualified and approved individual is managing the business on their behalf.
It is important to note that this exception is not automatic. The franchisee must obtain written approval from Buona for the designated management employee or approved agent. Without this written consent, the operation of the franchised business by any party other than the franchisee is considered a material default of the Franchise Agreement, potentially leading to termination. This requirement ensures that Buona maintains control over who is managing the business and that the designated individual meets their standards.