Does Buona retain the right to grant other licenses for the Buona marks?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee understands and agrees that its license with respect to the Marks is non-exclusive and that Franchisor has and retains the sole right under this Agreement:
(a) To grant other licenses for the Marks, in addition to those licenses already granted to existing franchisees;
(b) To develop and establish other franchise systems for the same, similar, or different products or services utilizing proprietary marks not now or hereafter designated as part of the System, and to grant licenses thereto, without providing Franchisee any such rights;
(c) To develop and establish other systems for the sale, at wholesale or retail, of similar or different products utilizing the same or similar Marks, without providing Franchisee any such rights; and
(d) As otherwise provided in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona retains the right to grant other licenses for the Buona marks. The franchise agreement specifies that the license granted to a franchisee is non-exclusive. This means Buona has the sole right to grant additional licenses for the Buona marks, including those already granted to existing franchisees.
This reservation of rights allows Buona to expand its franchise network by granting licenses to new franchisees. It also enables Buona to develop other franchise systems, even those with similar products or services, using proprietary marks that may or may not be part of the current Buona system. Buona can also establish other systems for selling similar or different products at wholesale or retail, using the same or similar marks, without giving the franchisee any rights to those systems.
For a prospective franchisee, this non-exclusive license has several implications. While the franchisee is granted a protected area, Buona retains considerable freedom to expand its brand through other channels and franchisees. The franchisee's rights to the Buona marks are specifically limited to the operation of their franchised business, and they do not gain any broader rights to the marks or the system itself. This is a fairly standard practice in franchising, as it allows the franchisor to maintain control over its brand and expand its reach as it sees fit.