What level of effort is required from the principal owner or designated management employee in the development, promotion, management, and operation of the Buona Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
We require that one of your principal owners who has at least a 10% ownership interest in Franchisee will have supervisory responsibility over the Franchises Business. Your principal owner or one designated management employee who has attended and successfully completed our training program must devote full time energy and best efforts to the development, promotion, management and operation of the Franchised Business. The designated manager need not have any equity interest in the Franchisee entity.
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.
If you have entered into an Area Development Agreement, you will be permitted to have multiple managers for each of your Buona Businesses. We recommend that a designated manager devote substantial full-time and best efforts on a daily basis, in person, to the supervision and conduct of a Buona Business. Your designated manager must successfully complete our training program. Your designated manager need not have an ownership interest in the franchisee entity. If you replace a manager, the new manager must satisfactorily complete our training program.
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 you are a franchisee, Buona requires that one of the principal owners, with at least 10% ownership in the franchise, has supervisory responsibilities over the franchised business. This owner, or a designated management employee who has completed Buona's training program, must devote their full-time energy and best efforts to the development, promotion, management, and operation of the Buona business. The designated manager is not required to have any equity interest in the franchisee entity.
If the franchisee proposes that the franchised business be operated or managed by another entity or individual, Buona reserves the right to review and approve the operating or managing entity or individual. They may also require and approve an operating or management agreement before the party assumes operations. Buona may reject the operating entity, individual operator, or the operating or management agreement at their discretion. If Buona approves, 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 franchisee. Operating the franchised business by any party other than the franchisee, without Buona's prior written consent, is a default of the Franchise Agreement, which may lead to termination.
For franchisees who have entered into an Area Development Agreement, multiple managers are permitted for each Buona business. Buona recommends that a designated manager devote substantial full-time and best efforts on a daily basis, in person, to the supervision and conduct of a Buona business. The designated manager must successfully complete Buona's training program but does not need to have an ownership interest in the franchisee entity. If a manager is replaced, the new manager must also satisfactorily complete the training program.