Who determines the amount of the technology fee for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4 Technology Fee.
Franchisee shall pay to Franchisor a technology fee in an amount determined by Franchisor.
Franchisor has the right to determine how and for what purposes the technology fees will be used, which may include covering Franchisor's costs or paying fees to third party providers for technology development, maintenance, and usage for the franchise system, and subscription and license fees paid by Franchisor in order for franchisees to have access to and use certain technology tools, and for related research and development conducted by Franchisor.
The technology fee shall be paid at times, in the manner, and in amounts as designated by the Franchisor.
Franchisor will give Franchisee at least sixty (60) days' prior notice before Franchisor before changing the amount of the technology fee.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the amount of the technology fee is determined by Buona itself. The technology fee will be paid by the franchisee to Buona. Buona also has the right to determine how these technology fees will be used. These uses may include covering Buona's costs, paying third-party providers for technology development, maintenance, usage for the franchise system, subscription and license fees, and related research and development conducted by Buona.
Buona also determines the times, manner, and amounts of the technology fee payments. Buona will provide the franchisee with at least sixty days' prior notice before changing the amount of the technology fee.
This gives Buona significant control over a potentially important expense for franchisees. Prospective franchisees should inquire about the typical range of technology fees, how they are calculated, and how the funds have been used historically to assess the potential financial impact and value received.