Are third parties beneficiaries to the Buona Franchise Agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.5 Delegation.
Franchisee agrees that Franchisor shall have the right to delegate to thirdparty designees, whether Franchisor's agents or independent contractors with whom Franchisor has contracted, the performance of any portion or all of Franchisor's obligations under this Agreement, and any right Franchisor has under this Agreement.
If Franchisor does so, such third-party designees will be obligated to perform the delegated functions for Franchisor in compliance with this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
Based on the 2025 Buona Franchise Disclosure Document, Buona may delegate its obligations under the Franchise Agreement to third-party designees, whether they are Buona's agents or independent contractors. If Buona delegates any of its obligations, these third-party designees are obligated to perform those functions in compliance with the Franchise Agreement. This delegation does not automatically make the third-party designees beneficiaries of the agreement in the traditional legal sense.
This clause allows Buona to outsource certain functions or services related to the franchise operation. For a franchisee, this means that some aspects of the support or services they receive from Buona might be provided by third parties. It is important to note that these third parties are obligated to perform their delegated functions in compliance with the Franchise Agreement, which should ensure a consistent level of service.
Prospective franchisees should inquire about the types of obligations that Buona typically delegates to third parties and the process for ensuring these third parties adhere to the standards set forth in the Franchise Agreement. Understanding the scope of this delegation and the mechanisms in place to maintain quality control is crucial for assessing the potential impact on the franchisee's business operations.