Does the Lessor acknowledge that the Lessee is not an agent or employee of Buona Franchisor?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
10. Consideration; No Liability.
- a) Lessor hereby acknowledges that the provisions of this Addendum to Lease are required pursuant to the Franchise Agreement under which Lessee plans to operate its business and Lessee would not lease the Premises without this Addendum. Lessor also hereby consents to the Collateral Assignment from Lessee to Franchisor as evidenced by Attachment A hereto.
- b) Lessor further acknowledges that Lessee is not an agent or employee of Franchisor and Lessee has no authority or power to act for, or to create any liability on behalf of, or to in any way bind Franchisor or any affiliate of Franchisor, and that Lessor has entered into this Addendum to Lease with full understanding that it creates no duties, obligations or liabilities of or against Franchisor or any affiliate of Franchisor.
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- Sales Reports. If requested by Franchisor, Lessor will provide Franchisor with whatever reports, information or data Lessor has regarding Lessee's sales from its Franchised Business.
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- Amendments. No amendment or variation of the terms of the Lease or this Addendum to the Lease shall be valid unless made in writing and signed by the parties hereto.
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- Reaffirmation of Lease. Except as amended or modified herein, all of the terms, conditions and covenants of the Lease shall remain in full force and effect and are incorporated herein by reference and made a part of this Addendum as though copies herein in full.
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- Beneficiary. Lessor and Lessee expressly agree that Franchisor is a third-party beneficiary of this Addendum.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Lessor acknowledges that the Lessee, who is the Buona franchisee, is not an agent or employee of Buona. The lease addendum states that the Lessor understands the franchisee has no authority to act for or create any liability on behalf of Buona. This understanding is part of the agreement between the Lessor and Lessee.
This provision protects Buona from potential liabilities or obligations that could arise from the franchisee's actions. It clarifies that the franchisee is an independent entity responsible for its own operations and obligations under the lease. The Lessor acknowledges that Buona is a third-party beneficiary of the lease addendum, giving Buona certain rights and protections under the lease agreement.
This type of clause is common in franchise agreements to ensure that all parties understand the distinct roles and responsibilities within the franchise system. It helps to avoid any confusion or disputes regarding liability and authority, reinforcing the independent contractor status of the franchisee.