What representations made by Buona are considered binding, even if not expressed in the franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Franchise Agreement is intended to disclaim any representations made by Franchisor in the franchise disclosure document provided to Franchisee. Franchisee understands and agrees that Franchisor shall not be liable or obligated for any oral representations or commitments made prior to the execution of this Agreement and that no modifications of this Agreement shall be effective except those in writing and signed by both parties. Franchisor does not authorize and will not be bound by any representation of any nature other than those expressed in this Agreement and in the most recent franchise disclosure document provided by Franchisor or its representatives. Franchisee further acknowledges and agrees that no representations have been made to it by Franchisor regarding projected sales volumes, market potential, revenues, or profits of Franchisee's Franchised Business, other than as stated in this Agreement or in the most recent franchise disclosure document provided by Franchisor or its representatives.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, representations made by Buona in the franchise disclosure document (FDD) are considered binding, even if they are not explicitly stated in the franchise agreement. Specifically, the franchise agreement does not disclaim any representations made by Buona in the FDD. Furthermore, Buona will not be bound by any representation of any nature other than those expressed in the franchise agreement and in the most recent franchise disclosure document provided by Buona or its representatives.
This means that prospective Buona franchisees should carefully review the FDD and any amendments to it, as any claims, promises, or statements made by Buona within those documents are legally binding. This includes information regarding projected sales volumes, market potential, revenues, or profits of Franchisee's Franchised Business, other than as stated in the Agreement or in the most recent franchise disclosure document provided by Franchisor or its representatives.
This clause protects franchisees by ensuring that Buona is held accountable for the information provided in the FDD. It also highlights the importance of due diligence on the franchisee's part to thoroughly examine the FDD and seek clarification on any points of concern before signing the franchise agreement. Franchisees should not rely on verbal promises or representations outside of these documents, as those are not binding on Buona.