Can the Operating Owner of a Buona franchise also be the designated manager providing direct on-site supervision?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
anaged by an Entity or individual other than Franchisee, Franchisor reserves 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. Franchisor may, in its sole discretion, reject the operating entity, the individual operator
or the operating or management agreement. If approved by Franchisor, the operating entity and/or individual shall agree in writing to attend all training required by Franchisor and to comply with all of Franchisee's obligations under this Agreement as though such party were the franchisee designated therein, on such form as may be designated by Franchisor. The operation of the Franchised Business by any party other than Franchisee, without Franchisor's prior written consent, shall be deemed a material default of this Agreement for which Franchisor may terminate this Agreement pursuant to the provisions of Section 16.
- 10.7 Staffing. Franchisee agrees to staff the Franchised Business with the number of managers, assistant managers and employees sufficient to operate the Franchised Business in compliance with this Agreement and the standards and specifications in the Manuals and to provide proper customer service during all hours of operation.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisor must approve the operating entity or individual operator of a franchise. The franchisor may reject the operating entity, the individual operator, or the operating or management agreement at their sole discretion. If approved, the operating entity or individual must agree in writing to attend all required training and comply with all of the franchisee's obligations as if they were the franchisee.
This means that while it may be possible for the Operating Owner to also be the designated manager, it is subject to Buona's approval. The Operating Owner would need to fulfill all training requirements and adhere to the franchise agreement as if they were the franchisee.
If the franchisor determines that the Operating Owner did not successfully complete the initial training program, the franchisee has the right to require the Operating Owner to attend and successfully complete additional training or to require a different owner to be designated Operating Owner to attend and successfully complete training. The franchisor also has the right to terminate the agreement if the initial training is not successfully completed. This highlights the importance of the Operating Owner being adequately trained and qualified to manage the franchise, whether they are also an owner or a designated manager.