Under what specific condition is a Buona franchisee entitled to claim rights or benefits under a contract between Buona Franchisor and another entity?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to participate in the National Accounts Program, Franchisee must (i) be and remain in compliance under this Agreement, and (ii) agree to comply with Franchisor's published standards, policies and procedures for participation in the National Accounts Program as they may be modified and supplemented from time to time.
Further, in order to provide services to a particular National Account, Franchisee must comply with the requirements of that particular National Account.
Franchisee shall have the right to decline participation in the National Accounts Program or with respect to a particular National Account.
Regardless of any other provisions of this Agreement, Franchisor grants to Franchisee no territorial rights of any kind whatsoever in connection with the National Accounts Program.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee's entitlement to claim rights or benefits under a contract between Buona and another entity is contingent upon their participation in the National Accounts Program. To participate, the franchisee must (i) be and remain in compliance under the Franchise Agreement, and (ii) agree to comply with Buona's published standards, policies, and procedures for participation in the National Accounts Program, as these may be modified from time to time. Furthermore, to provide services to a particular National Account, the franchisee must comply with the specific requirements of that National Account. However, the franchisee has the right to decline participation in the National Accounts Program or with respect to a particular National Account.
This arrangement allows Buona to establish and manage relationships with large national clients while offering franchisees the opportunity to participate and benefit from these accounts. However, participation is not mandatory, and franchisees can choose whether or not to engage in the program. This provides franchisees with some control over their business operations and allows them to focus on local market development if they prefer.
It is important to note that regardless of any other provisions in the Franchise Agreement, Buona does not grant franchisees any territorial rights in connection with the National Accounts Program. This means that even if a National Account operates within a franchisee's protected area, Buona retains the right to service that account directly or through other franchisees participating in the program. This aspect of the agreement is a crucial consideration for prospective franchisees, as it clarifies the limitations on their territorial rights in the context of national accounts.