Is it mandatory for a designated manager of a Buona franchise to have an ownership interest in the franchisee entity?

According to Buona's 2025 Franchise Disclosure Document, a designated manager is not required to have an ownership interest in the franchisee entity. Buona does require that one of the principal owners with at least a 10% ownership interest in the franchisee have supervisory responsibility over the franchised business. Alternatively, a designated management employee can fulfill this role, provided they have attended and successfully completed Buona's training program.

This policy provides flexibility for Buona franchisees. The franchisee can appoint a manager without offering equity in the business. This can be particularly useful for franchisees who want to retain full ownership control while delegating day-to-day management responsibilities to a trusted employee.

However, Buona retains the right to review and approve any operating or managing entity or individual if the franchisee proposes someone other than themselves to operate or manage the business. This ensures that any appointed manager meets Buona's standards and complies with the franchise agreement. 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.