Before signing the Franchise Agreement for a Buona franchise, what specific document must a franchisee complete and sign?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
You must complete and sign the Exhibit E Franchisee Acknowledgement Questionnaire before you sign the Franchise Agreement. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
EXHIBIT E
GUARANTY AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, before signing the Franchise Agreement, a prospective franchisee must complete and sign the Exhibit E Franchisee Acknowledgement Questionnaire. However, the FDD stipulates that prospective franchisees who reside in, or who intend to operate the franchised business in the state of California, should not complete this questionnaire or respond to any of the questions contained within it.
The Franchise Acknowledgement Questionnaire cannot be signed or dated on the same day as the Receipt for the Franchise Disclosure Document, but it must be signed and dated on the same day the Franchise Agreement is signed. This questionnaire likely covers important aspects of the franchise agreement and the franchisee's understanding of their obligations and rights.
It is common practice in franchising to have such an acknowledgement to ensure franchisees have reviewed key aspects of the FDD and understand their commitments. This step aims to minimize future disputes by confirming the franchisee's awareness of the terms and conditions before entering into the agreement. Franchisees should carefully review the questionnaire and provide honest responses, seeking clarification on any points of concern before signing.