Upon termination of the Buona franchise agreement, what is the franchisee required to do with the printed copies or electronic files of the Confidential Operations Standards Manual?

According to Buona's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee has specific obligations regarding the Confidential Operations Standards Manual. The franchisee must return any printed copies of the Manual to Buona or destroy any electronic files containing the Manual. This action must be taken upon termination of the agreement or as otherwise directed by Buona.

This requirement is in place because the Manual contains confidential information and trade secrets that are proprietary to Buona. The FDD emphasizes that the contents of the Manual and the franchisee's knowledge of Buona's processes are secret, unique, and confidential. This information is considered a trade secret, which is not generally known to competitors.

The franchisee must maintain the absolute confidentiality of all trade secrets both during and after the term of the franchise agreement. They are prohibited from using this information in any other business or in any manner not specifically authorized by Buona in writing. This obligation extends to preventing unauthorized disclosure of the Manual's contents to any person, as such disclosure would cause irreparable harm to Buona and its system.

These stipulations are typical in franchising to protect the franchisor's intellectual property and maintain uniformity across the franchise system. A prospective Buona franchisee should understand that these post-termination obligations are legally binding and designed to safeguard Buona's competitive advantage.