What is the condition for receiving a 20% discount on the initial franchise fee for additional Buona restaurants under the Development Agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ess activities not expressly prohibited by this Agreement.
- 1.4 This Agreement is not a Franchise Agreement, and you shall have no right to use in any manner the System or the Marks by virtue of entering into this Agreement.
- 1.5 Developer shall have no right under this Agreement to license others to operate a business or use the System or the Marks.
2. FEES
2.1 Concurrent with the execution of this Agreement, you must execute a Franchise Agreement for the first Buona Restaurant to be developed and pay the initial franchise fees of Forty Thousand Dollars ($40,000.00) due under said Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a developer may receive a discount on the initial franchise fee for additional restaurants. Specifically, the initial franchise fee for subsequent Buona Franchise Agreements will be $32,000, which represents a 20% discount. This discount is conditional.
The primary condition to receive the discounted franchise fee is that the developer must be in compliance with the Development Schedule at the time they sign any additional Franchise Agreement under the Development Agreement. If the developer is not in compliance with the Development Schedule when signing an additional franchise agreement, they will be required to pay the full initial franchise fee that Buona is charging new franchisees at that time.
This conditionality highlights the importance of adhering to the Development Schedule outlined in the Development Agreement. Prospective Buona franchisees should carefully review the Development Schedule and ensure they can meet the required milestones to take advantage of the discounted franchise fee for additional locations. Failing to meet the schedule could result in a significantly higher initial investment for each subsequent restaurant.