What does the estimate for land acquisition for a Buona franchise assume?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
filiate Five Flavors the initial franchise fee of $20,000 for a Rainbow Express.
- (2) Land This estimate assumes that you will acquire land and build a building for the restaurant. The estimate covers the cost of acquiring land. Your initial investment will be less if you lease the land upon which your Restaurant sits. The estimated low range for leasing land is $75,000 annually and the estimate high range for leasing is $225,000 annually. The cost of purchasing unimproved land or leasing land will vary significantly depending on location, availability of utilities and other factors. Depending on the market conditions and other factors in your geographic area, your land costs may vary from the estimates provided in this Item 7. We
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–32)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the estimate for land acquisition assumes that a franchisee will purchase land and construct a building for the restaurant. This estimate specifically covers the cost of acquiring the land. However, the FDD notes that a franchisee's initial investment will be less if they choose to lease the land instead.
The estimated low range for leasing land is $75,000 annually, while the high range is $225,000 annually. The cost of purchasing or leasing land can vary significantly based on factors such as location and the availability of utilities. Buona estimates that the land size will range from 45,000 to 60,000 square feet.
Prospective Buona franchisees should be aware that land costs can fluctuate based on market conditions and geographic area, potentially differing from the estimates provided in the FDD. It is important to carefully consider these factors and conduct thorough research to determine the actual land costs in their desired location.