After termination or expiration of a Buona franchise, what is the restriction on soliciting employees, and for how long does it last?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| s. Non-competition and non- solicitation covenants after the franchise is terminated or expires | Section 14.3 – 14.4 | No involvement in Competitive Business for 2 years within 10 miles of the site of any Buona Business, whether or not formerly owned by you, except owning less than 2% of the outstanding shares of a publicly traded security. No solicitation of our employees or our franchisees’ employees for 1 year. |
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, if the franchise agreement is terminated or expires, the franchisee is restricted from soliciting Buona's employees or its franchisees' employees for a period of one year. This restriction is designed to protect Buona's business and its franchise network by preventing former franchisees from poaching valuable staff.
This non-solicitation clause means that a former Buona franchisee cannot actively seek to hire current employees of either the franchisor or other franchisees within the Buona system. This kind of restriction is fairly standard in franchise agreements to maintain stability within the franchise network.
For a prospective Buona franchisee, this implies that after leaving the system, they will need to be careful not to recruit from within Buona for a year. Doing so could result in legal action from the franchisor. It is important to understand the scope of this restriction, including what constitutes 'solicitation' under the agreement, to avoid any unintentional violations.