Under what conditions can Buona revoke a franchisee's right to offer and sell catering services?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have the right to revoke Franchisee's right to offer and sell catering services if Franchisor determines in its sole discretion that Franchisee is not maintaining Franchisor's standards, specifications and procedures for catering or not complying with all applicable health, sanitation, food handling, and food transportation requirements, or if Franchisor determines in its sole discretion that offering such additional services is having an adverse impact on the quality of the operation of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the right to revoke a franchisee's right to offer and sell catering services under specific conditions. Buona can revoke this right if it determines, in its sole discretion, that the franchisee is not maintaining Buona's standards, specifications, and procedures for catering services. This includes not complying with all applicable health, sanitation, food handling, and food transportation requirements.
Additionally, Buona can revoke the catering services right if it determines, again in its sole discretion, that offering these additional services is having an adverse impact on the quality of the operation of the franchised business. This clause provides Buona with broad authority to ensure brand consistency and protect the overall quality of its franchise operations.
For a prospective franchisee, this means that maintaining high standards in catering operations is crucial. Failure to adhere to Buona's standards or any negative impact on the core business due to catering services could lead to the revocation of the right to offer these services. Franchisees should ensure they fully understand and can consistently meet Buona's requirements for catering services to avoid potential issues.