How does Buona account for royalties and other ongoing fees in the financial performance representation for affiliate-owned restaurants?

According to Buona's 2025 Franchise Disclosure Document, the financial performance representation includes data from affiliate-owned restaurants. These restaurants, however, do not pay royalties or other ongoing fees that a franchisee would be required to pay under the Franchise Agreement. To account for this difference, Buona imputes the fees that a franchisee would be required to pay in the financial performance representation.

This imputation is significant for prospective franchisees because it provides a more realistic view of potential earnings by factoring in the costs associated with royalties and other ongoing fees. Without this adjustment, the financial performance of affiliate-owned restaurants would appear more favorable than what a franchisee could expect to achieve. By imputing these fees, Buona aims to offer a more accurate representation of the financial obligations and potential profitability of a franchised Buona Business.

It is important for potential franchisees to carefully review how these fees are imputed and to understand the specific royalty structure outlined in the Franchise Agreement. While the FDD indicates that royalties are considered in the financial performance representation, it does not specify the exact method or amounts used for imputation. Therefore, prospective franchisees should seek clarification from Buona regarding the imputation methodology and ensure they fully understand the financial implications of these fees on their potential earnings.