What is the fee Buona charges a franchisee for each day of unauthorized use of its Marks?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee obtains Franchisor's prior written consent to close the Franchised Business for specific days or hours. Such consent shall apply only to each request Franchisee submits to Franchisor, which request shall include the specific dates and hours that Franchisee wishes to close the Franchised Business.
- g. Unauthorized Use of Marks. Franchisee shall pay Franchisor a fee of One Thousand Dollars ($1,000) for each and every day, beginning with the first day up through and including the day the default is cured, that Franchisee makes any unauthorized use of the Marks in any manner or in any media, including but not limited to signage, menus, advertising, social media or other internet use, and includ
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee will pay Buona $1,000 for each day of unauthorized use of its Marks. This fee applies from the first day of unauthorized use until the issue is resolved. The unauthorized use includes any manner or media, such as signage, menus, advertising, social media, or other internet use. This applies during the term of the Franchise Agreement, or after its expiration or termination for any reason.
This penalty underscores the importance Buona places on protecting its brand identity and trademarks. Unauthorized use can dilute the brand's value and create confusion among customers, which is why Buona enforces such a strict policy. The daily fee serves as a strong deterrent against any misuse of the Marks.
For a prospective franchisee, this means adhering strictly to the brand guidelines and obtaining prior written consent for any use of the Marks outside the approved scope. This includes ensuring all advertising, signage, and online presence comply with Buona's standards. Failure to do so can result in significant financial penalties, quickly accumulating to a substantial amount if the unauthorized use continues over an extended period.
It's important to note that the imposition of this fee does not prevent Buona from pursuing other legal remedies available under the Franchise Agreement or applicable law. This means that in addition to the daily fee, Buona could also seek injunctive relief or other damages to protect its Marks. Franchisees should, therefore, be diligent in understanding and complying with the brand's usage guidelines to avoid these penalties and potential legal actions.