Does Buona currently receive rebates from approved suppliers based on franchisee purchases?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not currently receive payments from designated or approved suppliers with respect to your purchases, but we and/or our affiliates reserve the right to do so. There are currently no purchasing or distribution cooperatives. We may in the future negotiate purchase arrangements with suppliers. You will receive no material benefits based on your purchases from approved suppliers. However, you must comply with the requirements to purchase from designated or approved suppliers to be in compliance with your Franchise Agreement.
We estimate that the purchase of supplies, equipment, inventory, fixtures, goods, services and products from us or our designated or Approved Suppliers, or those meeting our standards and specifications, will be between 60% to 80% of your total initial cost and between 30% to 45% of the total ongoing costs to operate your Buona Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–34)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona does not currently receive rebates from approved suppliers based on franchisee purchases. However, Buona retains the right to receive these payments in the future. While franchisees will not receive material benefits from purchasing from approved suppliers, compliance with the approved supplier program is mandatory under the Franchise Agreement.
Franchisees are required to purchase specific items, including Italian beef, Italian sausage, ingredients, food products, beverages, packaging, equipment, signs, furniture, fixtures, point-of-sale systems, software, and marketing materials, from designated or approved suppliers, which may include Buona's affiliates. For other materials, supplies, and services, franchisees must use suppliers who meet Buona's standards and specifications and have been approved in writing.
Buona estimates that purchases from approved suppliers will account for 60% to 80% of the total initial costs and 30% to 45% of the ongoing costs to operate a Buona Business. This highlights the importance of supplier relationships and the potential impact of any future rebate arrangements on Buona's revenue streams. If a franchisee wants to use an unapproved supplier, they or the supplier must submit a written request for approval, and may be subject to inspection and testing fees.