What is the development fee for each single-brand Buona restaurant to be developed?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------|--------------------| | FRANCHISOR INITIALS | DEVELOPER INITIALS |
Development Schedule. If you are not in compliance with the Development Schedule at the time of signing any additional franchise agreement, you will pay the then-current initial franchise fee being charged to new franchisees if it is greater than Thirty-Two Thousand Dollars ($32,000.00).
2.2 Upon the execution of this Development Agreement, you shall pay a fee ("Development Fee") in the amount of Sixteen Thousand Dollars ($16,000.00) times the number of additional Buona Restaurants to be developed after the one for which Developer is signing a Franchise Agreement contemporaneously with this Development Agreement. The Development Fee is consideration for this Development Agreement, is fully earned by Franchisor upon execution of this Development Ag
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a development fee of $16,000 is required for each additional single-brand Buona restaurant to be developed after the first restaurant. This fee is paid upon the execution of the Development Agreement.
Buona considers this development fee as consideration for the Development Agreement, and it becomes fully earned by Buona upon the agreement's execution. This fee is non-refundable, regardless of any conflicting terms in any Franchise Agreement. However, there is a credit applied to this fee.
Specifically, $16,000 of the development fee will be credited against the initial franchise fee for each additional Franchise Agreement for a Buona Restaurant. This credit is applicable only if the agreement is executed according to the terms of the Development Agreement. This means that while the $16,000 fee is initially paid, it essentially functions as a deposit towards the initial franchise fee for each subsequent restaurant developed under the agreement.