Do the affiliate-owned Buona restaurants pay royalties or other ongoing fees?

According to Buona's 2025 Franchise Disclosure Document, the affiliate-owned restaurants do not pay royalties or other ongoing fees that a franchisee would be required to pay under the Franchise Agreement. However, for the purposes of financial performance representation, the FDD imputes these fees to provide a more accurate comparison for prospective franchisees. This means that while the reported revenue and expenses of affiliate-owned locations do not reflect royalty or other fees, the financial tables in Item 19 may include calculations that estimate what those fees would be if the locations were franchised.

This distinction is important for a potential franchisee to understand because the historical financial results of affiliate-owned restaurants may appear more favorable than what a franchisee might experience. The absence of royalty and other fees in the affiliate-owned restaurant data could create a misleading impression of profitability. By imputing these fees, Buona aims to provide a more realistic projection of a franchisee's potential financial performance.

It is crucial for prospective franchisees to carefully review the explanatory notes and definitions within Item 19 of the FDD to understand how these imputed fees are calculated and applied. This will allow them to make a more informed assessment of the potential costs and profitability of operating a Buona franchise. Franchisees should also consider other factors that may affect their financial performance, such as location, competition, and management experience.