factual

Does the Buona Area Development Agreement addendum apply to both single and dual brand agreements?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

However, we will credit the amount of the Development Fee paid for each additional Franchises Restaurant against the Initial Franchise Fee due under each additional single brand and/or dual brand Franchise Agreement for a Franchised Restaurant executed pursuant to, and in accordance with, this Development Agreement.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to the 2025 Buona Franchise Disclosure Document, the Area Development Agreement addendum applies to both single and dual brand agreements. Specifically, the development fee paid for each additional franchise restaurant is credited against the initial franchise fee due under each additional single brand and/or dual brand Franchise Agreement executed according to the Development Agreement.

This means that if a developer commits to opening multiple Buona locations, whether single-brand or a combination of Buona and The Original Rainbow Cone (dual-brand), the development fee paid upfront will be applied as a credit towards the initial franchise fees for each subsequent restaurant. This can significantly reduce the initial investment required for each new location beyond the first one.

For a prospective Buona franchisee, this is a notable benefit. It incentivizes multi-unit development by lowering the financial barrier to entry for each additional location. However, it's important to note that the credit is only applied if the developer is in compliance with the Development Schedule at the time of signing each additional Franchise Agreement. Failing to meet the development timeline could result in losing the discount and paying the full initial franchise fee for subsequent locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.