What expenses are included in the estimated additional funds needed for the first 3 months of operation for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (13) Additional Funds (for 3 months of operation) This is an estimate of your additional funds requirements for the first 3 months of operations, based on our affiliate's experience of opening and operating Buona Businesses. New businesses often generate a negative cash flow. The estimated range for necessary additional funds for the first 3 months is as shown in the charts above, and includes general operating expenses, such as supplies, food and beverage products, packaging, payroll, payroll expenses, royalties, advertising, utilities, insurance, pest control, security, repairs, maintenance and complimentary sales and other costs. These figures only are estimates and you may incur additional expenses in starting your Buona Business. Your actual cost will depend on factors including without limitation your management skill, experience and business acumen, local economic conditions, the local market for your Buona Business, wage and labor rates, competition in the marketplace, the local market for your products and the sales level reached during the start-up phase. These amounts do not include any estimates for debt service.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–32)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the additional funds needed for the first three months of operation include a range of general operating expenses. These expenses are based on Buona's affiliate's experience in opening and operating Buona businesses. The FDD notes that new businesses often experience negative cash flow during their initial months.
The estimated additional funds cover costs such as supplies, food and beverage products, packaging, payroll, payroll expenses, royalties, advertising, utilities, insurance, pest control, security, repairs, maintenance, and complimentary sales, along with other costs. However, these figures are estimates, and actual costs may vary depending on factors like management skills, local economic conditions, market competition, wage and labor rates, and the sales level achieved during the start-up phase.
It's important to note that these estimates do not include any debt service. Prospective franchisees should carefully review these figures with a business advisor, accountant, or attorney before making any decision to purchase a Buona franchise. Buona does not offer financing for the initial investment, and the availability and terms of financing from third-party lenders will depend on the franchisee's creditworthiness and the lending institution's policies.