factual

Does Buona grant territorial rights to franchisees in connection with the National Accounts Program?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

Regardless of any other provisions of this Agreement, Franchisor grants to Franchisee no territorial rights of any kind whatsoever in connection with the National Accounts Program.

Franchisee agrees that Franchisor and third parties designated by Franchisor may solicit prospective National Accounts located within Franchisee's Buona Protected Area in order to develop them as National Accounts.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, franchisees are not granted territorial rights related to the National Accounts Program. Buona retains the sole discretion to determine the best methods for pursuing, negotiating, and servicing national accounts, including establishing the terms for each contract.

A "National Account" is defined as a business, institution, governmental agency, or other entity with multiple locations across different franchise territories, ongoing demands for products/services exceeding a single franchise's capacity, and/or a preference for single-point control over pricing, billing, and customer satisfaction. Franchisees can decline participation in the National Accounts Program or with a specific National Account.

Even if a National Account is located within a franchisee's protected area, Buona and its designated third parties can solicit these accounts. If a franchisee declines to participate, cannot service a National Account location due to program standards, or is prohibited from providing services, Buona, its affiliates, agents, or other franchisees can service the National Account without violating the original franchisee's protected area rights. The franchisee will not receive compensation for services provided to National Accounts they declined or were prohibited from serving. Buona may also charge a reasonable administrative fee if it provides administrative, billing, or collection services for a National Account.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.