If the Franchised Business is proposed to be operated by an individual other than the Franchisee, does Buona reserve the right to review and approve the individual?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
If at any time you propose that the Franchised Business to be operated or managed by an entity or individual other than Franchisee, we reserve the right to review and approve the operating or managing entity or individual and to require and approve an operating or management agreement prior to such party's assumption of operations. We may reject the operating entity, the individual operator or the
operating or management agreement in our discretion. If approved by us, the operating entity and/or individual must agree in writing to comply with all of Franchisee's obligations under the Franchise Agreement as though such party were the franchisee designated therein, on such form as may be designated by us. The operation of the Franchised Business by any party other than Franchisee, without our prior written consent, is a default of the Franchise Agreement for which we may terminate the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 51–52)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee proposes to have their Buona franchise operated or managed by someone other than themselves, Buona retains the right to review and approve that individual or entity. Buona also requires and must approve an operating or management agreement before the new party assumes operations.
Buona has the discretion to reject the proposed operating entity, the individual operator, or the operating or management agreement. If Buona approves the arrangement, the operating entity or individual must agree in writing to comply with all of the franchisee's obligations under the Franchise Agreement, as if they were the designated franchisee. This agreement must be in a form designated by Buona.
Operating the Buona franchise through another party without Buona's prior written consent constitutes a default of the Franchise Agreement, which may lead to termination of the agreement. This provision ensures that Buona maintains control over who operates its franchises and that all operators meet their standards and obligations.