Can Buona reject the operating entity, individual operator, or management agreement for a franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
If at any time Franchisee proposes for the Franchised Business to be operated or managed 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.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee proposes to have their Buona franchise operated or managed by another entity or individual, Buona retains the right to review and approve the operating or managing entity or individual. Buona also has the right to mandate and approve an operating or management agreement before the third party assumes operations.
Buona has the discretion to reject the proposed operating entity, individual operator, or the operating or management agreement. If Buona approves the arrangement, the operating entity or individual must agree in writing to attend all training required by Buona and comply with all of the franchisee's obligations under the Franchise Agreement as if they were the franchisee. This agreement must be in a form designated by Buona.
The operation of the Buona Franchised Business by any party other than the franchisee, without Buona's prior written consent, constitutes a material default of the Franchise Agreement. This gives Buona the right to terminate the agreement according to the provisions outlined in Section 16.