Is Buona obligated to develop National Accounts under a National Accounts Program?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.7 National Accounts**.** Franchisor may, but is not obligated to, develop various National Accounts under a National Accounts Program, for specific services such as catering.
Franchisor, in its sole discretion, shall determine the best method of pursuing, negotiating with and servicing National Accounts, and shall establish the terms for each National Account contract in its sole discretion, based on the needs of the National Account and its customers, Franchisor, the System and the Franchisor's franchisees.
A "National Account" as used herein is a business, institution, governmental agency or other person or entity that either itself or through common ownership, association or independent contractors, has multiple locations in a number of geographic areas that fall within multiple franchise territories, has ongoing demands for products and services that in a number of geographic areas or that exceed the capability of any single Franchised Business, and/or prefers a single contact in order to control pricing, billing, customer satisfaction, and/or similar requirements.
In order to participate in the National Accounts Program, Franchisee must (i) be and remain in compliance under this Agreement, and (ii) agree to comply with Franchisor's published standards, policies and procedures for participation in the National Accounts Program as they may be modified and supplemented from time to time.
Further, in order to provide services to a particular National Account, Franchisee must comply with the requirements of that particular National Account.
Franchisee shall have the right to decline participation in the National Accounts Program or with respect to a particular National Account.
Regardless of any other provisions of this Agreement, Franchisor grants to Franchisee no territorial rights of any kind whatsoever in connection with the National Accounts Program.
Franchisee agrees that Franchisor and third parties designated by Franchisor may solicit prospective National Accounts located within Franchisee's Buona Protected Area in order to develop them as National Accounts.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona is not obligated to develop National Accounts under a National Accounts Program. The FDD specifies that Buona may, but is not required to, develop these accounts for specific services like catering.
For a prospective franchisee, this means that while Buona might pursue national-level partnerships to increase brand awareness and revenue, they are not contractually bound to do so. This provides Buona with flexibility in its business strategy, allowing them to focus on other areas of growth if they deem it more beneficial.
However, if Buona chooses to implement a National Accounts Program, they have sole discretion over how it is managed, including negotiating terms and servicing these accounts. Franchisees must adhere to Buona's standards and the specific requirements of each National Account if they choose to participate, and they can decline participation in the program or with specific accounts. Buona also retains the right to solicit National Accounts within a franchisee's protected area, and other franchisees may service those accounts if the original franchisee declines or is unable to provide service.