What power does the Buona franchisee grant to the Franchisor regarding the Identifiers?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Franchisor has the sole right to, and interest in, all Identifiers used by Franchisee to promote the Franchised Business and/or associated with the Marks.
Franchisee hereby irrevocably appoints Franchisor, with full power of substitution, as Franchisee's true and lawful attorney-in-fact, which appointment is coupled with an interest, to execute such directions and authorizations as may be necessary or prudent to accomplish the foregoing.
Franchisee further appoints Franchisor to direct the telephone company and all listing agencies, internet service providers, domain name registrars, social media platforms or networks or any other third parties having control over the Identifiers to transfer such Identifiers to Franchisor or Franchisor's designee.
The telephone company and all listing agencies, internet service providers, domain name registrars, social media platforms or networks or any other third parties having control over the Identifiers may accept such direction by Franchisor pursuant to this Agreement as conclusive evidence of Franchisor's rights to the Identifiers and Franchisor's authority to direct their transfer.
- (e) Franchisee shall immediately take all actions as shall be necessary to amend or cancel any assumed name, fictitious or business name or equivalent registration that contains any
Marks or other trademarks of Franchisor or in any way identifies Franchisee as being affiliated with the System;
- (f) Franchisee shall immediately notify all of its suppliers, utilities, landlords, creditors and others with whom it is doing business that Franchisee is no longer affiliated with the Franchised Business or the System and provide proof to Franchisor of this notification within five (5) days of the termination or expiration of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee acknowledges that Buona has the sole right to and interest in all Identifiers used to promote the Franchised Business and/or associated with the Marks. The franchisee irrevocably appoints Buona as their attorney-in-fact, granting Buona the power to execute directions and authorizations necessary to accomplish the aforementioned. This appointment is coupled with an interest, meaning it's a right that Buona holds as part of the franchise agreement, not just a simple agency agreement.
This appointment extends to directing the telephone company, listing agencies, internet service providers, domain name registrars, social media platforms, or any other third parties controlling the Identifiers to transfer such Identifiers to Buona or its designee. The agreement states that these third parties may accept Buona's direction as conclusive evidence of Buona's rights to the Identifiers and its authority to direct their transfer.
In practical terms, this means that Buona has significant control over the franchisee's online presence and branding. Buona can direct the transfer of domain names, social media accounts, and other online assets associated with the franchise. This is a fairly standard practice in franchising, as it allows the franchisor to maintain brand consistency and control over the brand's image. However, it's crucial for the franchisee to understand the extent of this control and ensure that they are comfortable with it.
Additionally, the franchisee must take immediate action to amend or cancel any assumed name, fictitious or business name, or equivalent registration that contains any Marks or other trademarks of Buona or identifies the franchisee as being affiliated with the System. The franchisee must also notify all suppliers, utilities, landlords, creditors, and others with whom it is doing business that the franchisee is no longer affiliated with the Franchised Business or the System and provide proof to Buona of this notification within five days of the termination or expiration of the Agreement.