What actions by a Buona franchisee related to audits trigger the $1,000 per day fee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
y unauthorized use of the Marks in any manner or in any media, including but not limited to signage, menus, advertising, social media or other internet use, and including during the term of this Agreement, or subsequent to its expiration or termination for any reason.
- h. Failure to Comply with Audit. Franchisee shall pay Franchisor a fee of One Thousand Dollars ($1,000) per day, for each and every day, beginning with the first day up through and including the day the default is completely cured, that Franchisee
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee may be subject to a fee of $1,000 per day if they fail to comply with audit requests. This fee is applied for each day the franchisee remains in default, starting from the first day of non-compliance until the issue is resolved.
Specifically, this fee is triggered if the franchisee fails to provide all information, records, and documents requested by Buona in connection with an audit of the Franchised Business, as outlined in Section 4.7 of the Franchise Agreement. The fee also applies if the franchisee refuses entry to Buona's representative for an inspection of the Franchised Business, as described in Section 10.2(m) of the agreement.
This non-compliance fee can quickly become a significant financial burden, emphasizing the importance of a franchisee's adherence to audit and inspection requirements. Franchisees should maintain organized and accessible records, and cooperate fully with Buona during audits and inspections to avoid incurring these daily fees. It is also important to understand Sections 4.7 and 10.2(m) of the franchise agreement to fully understand the scope of required cooperation.