Is the Buona Development Fee refundable?

According to Buona's 2025 Franchise Disclosure Document, the Development Fee is generally non-refundable. Specifically, the FDD states that the Development Fee is not refundable under any circumstances. However, this fee is not entirely lost, as it is credited against additional franchise fees as outlined in the Area Development Agreement or the Dual Brand Area Development Agreement.

For developers looking to open multiple Buona franchises, this means that while the initial Development Fee cannot be returned, it reduces the financial burden of subsequent franchise fees. The Development Fee is one-half of the initial franchise fees that will be due for the additional Buona Businesses to be developed. For each additional franchise, $16,000 of the Development Fee will be applied against the initial franchise fee, and the franchisee will pay the balance due of $16,000.

However, if a developer fails to meet the Development Schedule outlined in their Area Development Agreement or Dual Brand Area Development Agreement, they will be required to pay the then-current initial franchise fees for each restaurant franchise. For example, if a developer agrees to develop three single-brand franchises but fails to meet the development schedule before signing a franchise agreement for the second franchise, they will pay an additional $48,000 in initial franchise fees for the second and third franchises. This amount is calculated as $40,000 times two (for the two remaining franchises), less the $32,000 applied from the Development Fee previously paid.