What obligation does a Buona franchisee accept regarding the operation of the Buona Business during the term of the agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ecessity of opening and operating Franchised Businesses in conformity with the System.
NOW, THEREFORE, the parties hereto agree as follows:
I. APPOINTMENT
- 1.1 Grant of Franchise. For the Term (as defined in Section 2.1), Franchisor grants to Franchisee, and Franchisee accepts from Franchisor, a non-exclusive license to operate one Franchised Business, and Franchisee accepts the obligation to operate the Franchised Business during the Term in the following general area: _______________________________. Upon approval of Franchisee's location by Franchisor, Franchisor and Franchisee shall execute Exhibit A attached hereto which will identify the Approved Location.
- 1.2 Operation of the Franchised Business. Franchisee shall operate the Franchised Business, and use the Marks and the System in connection with the Franchised Business, as the Marks and the System may be modified, improved and developed by Franchisor from time to time, only in accordance with the terms and conditions of this Agreement. Franchisee shall use its best efforts to develop and promote the Franchised Business. All products and services must be sold by Franchisee only from the Approved Location.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee accepts the obligation to operate the Buona Business during the term of the franchise agreement. This includes operating the franchised business and using the Marks and the System in connection with the Franchised Business, as the Marks and the System may be modified, improved and developed by Franchisor from time to time, only in accordance with the terms and conditions of this Agreement. The franchisee must also use its best efforts to develop and promote the Franchised Business.
This obligation means that a franchisee must adhere to Buona's standards and guidelines for operating the business, including using the company's trademarks and systems. It also means that the franchisee is expected to actively work to grow the business and increase sales. This is a standard obligation for franchisees in most franchise systems, as it ensures consistency and quality across all locations.
Furthermore, all Buona products must be sold by Franchisee only from the Approved Location. Franchisee may not use other channels of distribution such as the internet, catalog sales, telemarketing or other direct marketing to make sales outside of and apart from the operation of the Franchised Business at the Approved Location without Franchisor's prior written consent, which may be withheld by Franchisor in its sole discretion. This ensures that the franchisee focuses on the physical location and does not dilute sales through other channels without approval.