Under what condition can a Buona franchisee engage in other businesses besides the franchised business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) to engage in any other business activities not expressly prohibited by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
Based on the 2025 Buona Franchise Disclosure Document, the franchisee can engage in other business activities if they are not expressly prohibited by the Franchise Agreement. Buona also reserves the right to distribute products and services through alternative channels, establish other businesses (even those similar to the franchised restaurant), acquire or be acquired by another franchisor, and implement multi-area marketing programs.
This means a Buona franchisee has some flexibility to pursue other ventures, provided those activities do not violate the terms outlined in their agreement with Buona. However, Buona retains significant rights to operate and distribute products through various channels, potentially creating competition for franchisees.
Prospective franchisees should carefully review the Franchise Agreement to understand what specific activities are prohibited and how Buona's reserved rights might impact their business. It is important to have a clear understanding of these limitations before investing in a Buona franchise.