What is the daily fee Buona charges for failing to comply with an audit request?
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, if a franchisee fails to provide the requested information, records, and documents for an audit, or refuses entry to a Buona representative for an inspection, Buona will charge a fee. This fee amounts to $1,000 per day.
This daily fee starts from the first day of non-compliance and continues for every subsequent day until the franchisee fully addresses and corrects the issue. This means the franchisee must provide all the necessary information or allow the inspection to occur to stop the accrual of the $1,000 daily fee.
This penalty underscores the importance of adhering to Buona's audit and inspection requirements as outlined in Sections 4.7 and 10.2(m) of the franchise agreement. For a prospective franchisee, this highlights the need to maintain organized and accessible records, and to cooperate fully with any audit requests from Buona to avoid incurring significant daily penalties.