What should a prospective Buona franchisee do before signing the Franchise Agreement regarding trademark rights?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you sign the Franchise Agreement, you should investigate independently whether your use of the Marks in your area might infringe on the rights of any third party, particularly in your intended area of operation.
Source: Item 13 — TRADEMARKS (FDD pages 48–50)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a prospective franchisee should independently investigate whether their use of Buona's marks in their area might infringe on the rights of any third party, particularly in their intended area of operation, before signing the Franchise Agreement. This is a crucial step in due diligence, as trademark infringement can lead to legal complications and financial losses.
Buona grants franchisees the non-exclusive right and obligation to use their marks under the Franchise Agreement. The Buona Companies, L.L.C., an affiliate, owns the marks and licenses Buona to sublicense the use of the marks to its franchisees. Several marks, such as "BUONA CATERING," "BUONA1," "BUONA BEEF," "BUONA SALADS SANDWICHES PIZZA," and "BUONA-FIED," are registered with the USPTO.
It is standard practice in franchising for the franchisor to own and protect its trademarks, granting franchisees the right to use them within the scope of their franchise agreement. However, the responsibility to ensure non-infringement in a specific territory often falls on the franchisee. By conducting an independent investigation, a prospective Buona franchisee can proactively identify potential conflicts and assess the risks associated with using the marks in their chosen location. This may involve consulting with an attorney specializing in trademark law to conduct a comprehensive search and analysis of existing trademarks in the area.