What was the dollar amount of the 4.0% Buona Royalty for the dual-branded location?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1/1/24 - 12/29/24 | ||
|---|---|---|
| Dual Brand (The Original Rainbow | ||
| Cone | ||
| Seasonal - May thru Sept) | Store 11 | |
| BUONA Restaurant Sales (1) | 3,768,651 | 90.9% |
| BUONA Catering Sales (2) | 270,590 | 6.5% |
| Rainbow Cone Sales (3) | 108,551 | 2.6% |
| Total Gross Sales | 4,147,792 | 100.0% |
| Food Cost (4) | 1,208,146 | 29.1% |
| Packaging Cost (5) | 122,319 | 2.9% |
| Gross Profit (6) | 2,817,327 | 67.9% |
| Salaries & Wages (7) | 982,946 | 23.7% |
| Employee Benefits (8) | 171,544 | 4.1% |
| Direct Operating Expenses (9) | 31,561 | 0.8% |
| Supplies & Chemicals (10) | 42,411 | 1.0% |
| Utilities (11) | 69,281 | 1.7% |
| General & Administrative (12) | 136,212 | 3.3% |
| Repairs & Maintenance (13) | 44,907 | 1.1% |
| Sales Incentives (14) | 240,624 | 5.8% |
| Tech Fee (15) | 5,200 | 0.1% |
| Local Advertising (16) | 41,478 | 1.0% |
| 2.5% BUONA Brand Marketing Fund | ||
| (17) | 100,981 | 2.4% |
| 4.0% BUONA Royalty (18) | 161,570 | 3.9% |
| 3.0% Rainbow Cone Brand Marketing | ||
| Fund (19) | 3,257 | 0.1% |
| 6.0% Rainbow Cone Royalty (20) | 6,513 | 0.2% |
| Income (21) | 778,843 | 18.8% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–75)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the 4.0% Buona Royalty for the dual-branded location, specifically Store 11, was $161,570. This figure represents 3.9% of the store's total gross sales. Store 11 is a dual-branded location that includes The Original Rainbow Cone, operating seasonally from May through September.
Additionally, the FDD provides data for other dual-branded locations. For instance, the 4.0% Buona Royalty for Store 18 was $182,881, representing 3.7% of gross sales. For Stores 15, 16, and 17, the 4.0% Buona Royalties were $98,936, $128,714, and $102,249, respectively. These royalties accounted for 3.8%, 3.7%, and 3.7% of each store's gross sales.
It's important to note that these figures are based on the historical performance of affiliate-owned Buona restaurants and may not be indicative of the performance of a franchised location. Factors such as location, management, and local market conditions can significantly impact a restaurant's financial performance. Prospective franchisees should carefully consider these factors and conduct their own due diligence before investing in a Buona franchise.
The FDD clarifies that the data source is the income statements for each restaurant, prepared internally by Buona's affiliates, using generally accepted accounting principles. However, this information has not been audited, so franchisees should consider this when evaluating the data.