To which entities are the initial franchise fees paid by a Buona franchisee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
anchised Business are located require a longer notice period, the thirty-day period will be deemed modified to be the shortest notice period required by the laws of such jurisdiction.
III. FEES
- 3.1 Initial Franchise Fee In consideration of the franchise granted to Franchisee herein, Franchisee shall pay to Chicago's Original Italian Beef Franchising, LLC an initial franchise fee in the amount of Forty Thousand Dollars ($40,000.00) and shall pay to Five Flavors Franchising, LLC an initial franchise fee in the amount of Twenty Thousand Dollars ($20,000.00) (collectively, the "Initial Franchise Fee") payable in one lump sum upon execution of this Agreement by Franchisee. Except as otherwise specifically provided herein at Section 8,2, the Initial Franchise Fee is non-ref
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the initial franchise fee is paid to two entities: Chicago's Original Italian Beef Franchising, LLC and Five Flavors Franchising, LLC.
The initial franchise fee is $40,000 payable to Chicago's Original Italian Beef Franchising, LLC, and $20,000 payable to Five Flavors Franchising, LLC. Therefore, the total initial franchise fee amounts to $60,000. This fee is due in one lump sum when the Franchise Agreement is executed by the franchisee.
Buona considers the initial franchise fee fully earned upon payment. This acknowledges the expenses Buona incurs when granting the franchise and accounts for the lost opportunity to grant a franchise to someone else. The FDD specifies that the initial franchise fee is generally non-refundable, except as provided in Section 8.2 of the agreement.