If an operating entity is approved to operate the Buona franchise, what agreement must they comply with?
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 the Franchised Business is proposed to be operated or managed by an entity or individual other than the franchisee, Buona reserves the right to review and approve the operating or managing entity or individual. Buona also reserves the right to require and approve an operating or management agreement before the party assumes operations. Buona may reject the operating entity, the individual operator, or the operating or management agreement at its discretion.
If Buona approves the operating entity or individual, that party must agree in writing to comply with all of the franchisee's obligations under the Franchise Agreement. This compliance is required as though the operating entity or individual were the franchisee designated in the agreement. The form of this agreement will be designated by Buona.
The operation of the Franchised Business by any party other than the franchisee, without Buona's prior written consent, constitutes a default of the Franchise Agreement. This default may result in the termination of the Franchise Agreement.