During the term of the Buona franchise, what activities are prohibited regarding competitive businesses and customers?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| r. Non-competition and Non- Solicitation covenants during the term of the franchise | Section 14.2, 14.4 | No involvement in Competitive Business anywhere and no diversion of any business or customers of the Buona Business. No solicitation of our employees or our franchisee’ employees. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 52–60)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Section 14.2 and 14.4 of the Franchise Agreement outline restrictions on franchisees regarding competitive business and customer relationships during the franchise term. Specifically, franchisees are prohibited from any involvement in a Competitive Business anywhere.
Additionally, Buona franchisees are not allowed to divert any business or customers away from the Buona Business. This means a franchisee cannot actively try to take existing Buona customers and direct them to a different business, presumably one that the franchisee has an interest in.
Finally, franchisees are prohibited from soliciting employees of Buona or employees of other Buona franchisees. This prevents franchisees from poaching staff from the franchisor or other franchisees within the Buona system, which could disrupt business operations and create internal conflicts.