What expenses are NOT included in the financial data provided for the Buona restaurants?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The statements shown in the tables DO NOT include the following expense items, which must be calculated and included separately for every Buona Restaurant:
- Actual Local Advertising, including promotional discounts done at the POS.
- Depreciation of property and equipment.
- Rent, interest or other financing cost for land, buildings, equipment and inventory.
- Initial franchise fee and organization costs.
- Any management fees.
- Income taxes and property taxes.
- Other Employee benefits, such as bonus incentives, meal discounts, other team member compensation.
- Other expenses, such as furniture & equipment, technology software & equipment, meeting expense, cash over/short, credit card chargebacks, armored car, & window washing services.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–75)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the financial performance representations provided do not include all potential expenses a franchisee might incur. The Item 19 financial statements specifically exclude several categories of expenses that a prospective Buona franchisee must consider separately when evaluating the potential profitability of a location.
Specifically, the expenses not included in the provided financial data are actual local advertising costs (including promotional discounts at the point of sale), depreciation of property and equipment, rent, interest, or other financing costs for land, buildings, equipment, and inventory. Furthermore, the initial franchise fee and organization costs, any management fees, income taxes, property taxes, and other employee benefits like bonus incentives, meal discounts, and other team member compensation are also excluded.
In addition, the financial statements do not account for other potential expenses such as furniture and equipment, technology software and equipment, meeting expenses, cash overages or shortages, credit card chargebacks, armored car services, and window washing services. A prospective franchisee needs to estimate these costs independently to develop a comprehensive understanding of the investment required and the potential return on investment for a Buona franchise.