What expenses are included in the Item 19 financial performance representation for the 8 Buona affiliate-owned dual brand restaurants?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The tables below show the Gross Sales and certain specified expenses as listed and defined below of the 8 Buona affiliate-owned dual brand restaurants included in this statement. This does not include all expenses incurred by a Dual Brand Business.
(4) "Food Cost" includes costs of food and beverage items.
(5) "Packaging Cost" includes paper and plastic product expenses.
(7) "Salaries and Wages" include wages paid to Company-Owned Restaurant managers and crew.
Salaried Manager wages range from $48,000/year to $81,000/year.
Crew wages range from $13.00/hour to $23.00/hour.
(8) "Employee Benefits" includes Payroll Taxes, Workers Compensation contributions, Health Insurance, Dental Insurance, Vision Insurance, and POS Discounts given to store staff.
(9) "Direct Operating Expenses" include in-store marketing, signage, uniforms, telephone, internet, permits, door & fire alarm monitoring, music, pest control, fuel, and vehicle insurance.
(10) "Supplies & Chemicals" include supplies and chemicals used at Company-Owned Restaurants.
(11) "Utilities" includes electricity, gas, water and sewer, and garbage collection.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–75)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Item 19 financial performance representation includes specific expenses for 8 affiliate-owned dual-brand restaurants. These restaurants operate under both the "Buona" and "The Original Rainbow Cone" brands and are free-standing locations with drive-throughs. The expenses include 'Food Cost,' which covers the costs of food and beverage items, and 'Packaging Cost,' which includes expenses for paper and plastic products. The financial performance representation also includes 'Salaries and Wages,' encompassing wages paid to company-owned restaurant managers and crew, with salaried manager wages ranging from $48,000 to $81,000 per year and crew wages ranging from $13.00 to $23.00 per hour.
Additionally, the Item 19 statement incorporates 'Employee Benefits,' including payroll taxes, workers' compensation contributions, health, dental, and vision insurance, and POS discounts given to store staff. 'Direct Operating Expenses' are also included, covering in-store marketing, signage, uniforms, telephone, internet, permits, door and fire alarm monitoring, music, pest control, fuel, and vehicle insurance. 'Supplies & Chemicals' used at company-owned restaurants are accounted for, as are 'Utilities,' which include expenses for electricity, gas, water and sewer, and garbage collection.
It is important to note that the Item 19 data is derived from income statements prepared internally by Buona's affiliates, following generally accepted accounting principles, and has not been audited. The FDD states that this financial performance representation does not include all expenses incurred by a Dual Brand Business. Prospective franchisees should be aware that the financial performance of franchised locations may differ from the affiliate-owned restaurants due to factors such as brand recognition in new markets and the ability to negotiate favorable prices with manufacturers and distributors. The affiliate-owned restaurants also sell pizza, which franchised restaurants will not, and the affiliate-owned restaurants do not pay royalties or other ongoing fees.