Where can I find more details about how to pay the royalty fees for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
. The royalties shall be paid throughout the Term, and are payable weekly (or on such other basis as may be set forth in the Manuals or otherwise agreed to in writing by Franchisor) calculated on Gross Sales of the preceding week. Royalty fees shall be paid in the manner set forth in Section 3.5 of this Agreement or as otherwise provided for in the Manuals.
- 3.3 Marketing Fund Contribution. Recognizing the value of advertising and marketing to the goodwill and public image of the Franchised Businesses, each Franchisor will establish, maintain and administer an advertising, marketing and promotional fund (the "Marketing Fund") for such advertising, marketing and promotions as Franchisor may deem necessary or appropriate in its sole discretion. Franchisee shall contribute to each of the Marketing Funds an amount Franchisor designates up to a total of two and one-half percent (2.5%) of the Gross Sales (as defined below) of the Franchised Business arising from the sale of Buona products and services and up to a total of three percent (3%) of the Gross Sales of the Franchised Business arising from the sale of The Original Rainbow Cone products and services. Franchisor shall determine whether Franchisee will make one payment to Franchisor that will be distributed to each Marketing Fund based on the Gross Sales of the respective Brands or whether Franchisee shall make separate payments to each Marketing Fund. Franchisor will give Franchisee sixty (60) days' notice prior to implementing any increase or decrease in the Marketing Fund contribution. Franchisor has right to discontinue or reestablish the Marketing Fund upon sixty (60) days' advance notice to you. In the event
Franchisor discontinues the Marketing Fund, Franchisor will distribute all unspent amounts existing in the Marketing Fund on the date of discontinuance to franchisees in proportion to their respective contributions for the most recent six (6) months. This Marketing Fund contribution is due weekly (or on such other basis as may be set forth in the Manuals or otherwise agreed to in writing by Franchisor) along with the royalty fee for the Gross Sales for the preceding week. A further description of the Marketing Fund and your obligations with respect to advertising, marketing and promoting the Franchised Business is set forth in Article XI of this Agreement. Marketing Fund contributions shall be paid in the manner set forth in Section 3.5 of this Agreement or as otherwise provided in the Manuals.
- 3.4 Technology Fee. Franchisee shall pay to Franchisor a technology fee in an amount determined by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, details regarding royalty fee payments can be found in Section 3.5 of the Franchise Agreement or as specified in the Manual. The manual isn't included in the provided excerpts.
In addition to royalty fees, franchisees must also contribute to Buona's Marketing Fund, with contributions up to 2.5% of Gross Sales. The timing of these contributions mirrors that of royalty fees, due weekly or as outlined in the Manual or agreed upon in writing with Buona. The specifics of the Marketing Fund and franchisee obligations are detailed in Article XI of the Franchise Agreement, which is not included in the provided excerpts.
Franchisees are also responsible for a technology fee, the amount of which is determined by Buona. The FDD does not specify the payment method or frequency for the technology fee. Failure to meet payment obligations for royalties, Marketing Fund contributions, or technology fees can result in a penalty of $100 per day until the default is resolved.
Prospective franchisees should carefully review Section 3.5 and Article XI of the Franchise Agreement, as well as the Buona operations manual, to fully understand the payment procedures, schedules, and potential penalties associated with royalty fees, marketing fund contributions, and technology fees. It is also important to clarify with Buona the exact amount and payment terms for the technology fee.