What happens to Buona's obligations under the Franchise Agreement if it assigns its interest?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement shall inure to the benefit of the successors and assigns of Franchisor.
Franchisor shall have the right to transfer or assign its interest in this Agreement to any person, persons or Entity.
If Franchisor's assignee assumes all the obligations of Franchisor hereunder and sends Franchisee written notice of the assignment so attesting, Franchisor will have no further obligation under this Agreement, and Franchisee agrees promptly to execute a general release of Franchisor and its Affiliates, from claims or liabilities of Franchisor under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the right to transfer or assign its interest in the Franchise Agreement to any person, persons, or entity. If the assignee assumes all of Buona's obligations under the agreement and sends the franchisee written notice attesting to the assignment, Buona will have no further obligation under the agreement.
Upon receiving such notice, the franchisee agrees to promptly execute a general release of Buona and its affiliates from any claims or liabilities. This means that once Buona assigns its interest and the franchisee receives proper notification, Buona is released from any further responsibilities or liabilities under the Franchise Agreement, provided the new assignee takes on those responsibilities.
This clause is fairly standard in franchise agreements, allowing the franchisor flexibility in its business operations. However, it's crucial for a prospective Buona franchisee to understand that their agreement could be transferred to a new entity, and their recourse against the original franchisor, Buona, would be limited after the assignment and release.