Who owns the Buona trademarks?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant you the non-exclusive right and obligation to use the Marks under your Franchise Agreement. You may also use other current or future trademarks to operate your Buona Business as we designate from time to time. Our affiliate The Buona Companies, L.L.C. owns and is using the Marks in connection with Buona Businesses and has granted a license to us to use and sublicense the use of the Marks to our franchisees.
We have been granted the right to license the Marks and System to our franchisees by a License Agreement between us and our affiliate The Buona Companies L.L.C. dated May 13, 2021. Our License Agreement with The Buona Companies L.L.C. does not materially limit our rights to use or to license our franchisees to use the Marks and System. The agreement is for an initial term of 20 years with successive 5-year automatic renewal options. The agreement includes quality control provisions for the protection of the licensor's trademark rights. The agreement may be terminated by The Buona Companies L.L.C. only for good cause due to a breach by us without cure, change in ownership of us of more than 20%, or our filing bankruptcy, becoming insolvent or being subject to the appointment of a receiver or trustee.
Source: Item 13 — TRADEMARKS (FDD pages 48–50)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the trademarks associated with the Buona franchise are owned by The Buona Companies, L.L.C., an affiliate of the franchisor. Buona, however, has been granted a license to use and sublicense these marks to its franchisees. This arrangement means that while Buona franchisees are permitted to use the trademarks to operate their businesses, the ultimate ownership and control of the marks reside with The Buona Companies, L.L.C. This is a common structure in franchising, where a separate entity owns the intellectual property and licenses it to the franchising company.
This licensing agreement between Buona and The Buona Companies, L.L.C. was established on May 13, 2021, for an initial term of 20 years, with automatic renewal options for successive 5-year periods. The agreement includes quality control provisions designed to protect the licensor's trademark rights. The Buona Companies, L.L.C. can terminate the agreement only for specific reasons, such as a breach by Buona that goes uncured, a change in Buona's ownership exceeding 20%, or if Buona files for bankruptcy, becomes insolvent, or is subject to the appointment of a receiver or trustee.
For a prospective Buona franchisee, this arrangement means that their right to use the Buona trademarks is contingent upon Buona's continued good standing with The Buona Companies, L.L.C. While the agreement is structured to provide long-term stability, franchisees should be aware of the conditions under which the license could be terminated, as this would directly impact their ability to operate under the Buona brand. It is also important to note that Buona retains control over the use of the marks on websites, social media, digital marketing, and mobile applications, ensuring brand consistency across all digital platforms. Franchisees must also adhere to Buona's rules and guidelines when using the marks and indicate that they are independently owned and operated licensed franchisees in contracts, advertisements, and signage.