factual

Where can I find the details of my required contributions to the Buona Marketing Fund?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

tial information or personal information) with any unapproved third-party platforms, including Generative AI, except as authorized in writing by Franchisor. In addition, Franchisee will prohibit its employees from using any Confidential Information in Generative AI. In the event Franchisee utilize any Generative AI, with or without Franchisor's prior approval, Franchisee must comply with all laws applicable to such use, including without limitation, all trademark, copyright, and biometric laws, and must not infringe upon the intellectual property of a third party, or use such intellectual property without appropriate authorization and attribution.

XI. MARKETING

11.1 Marketing Fund. Franchisor administers a national marketing fund ("Marketing Fund"). Franchisee's required contributions to the Marketing Fund is set forth in Paragraph 3.3 of this Agreement.

Franchisor will be entitled to direct all advertising, marketing and promotional programs financed by the Marketing Fund, with sole discretion over the creative concepts, materials, and endorsements used in them, and the geographic, market, and media placement and allocation of the programs. Franchisee agrees that the Marketing Fund may be used to pay the costs of preparing and producing video, audio, digital and written advertising materials; administering national, regional or local advertising programs including, without limitation, direct mail and other media advertising, and employing advertising agencies to assist in those activities; establishing and maintaining the Buona Website; internet-based advertising and marketing programs, developing and maintaining other presence on the Internet, including reputation management and system-wide online programs for customer ordering and loyalty rewards program; intranet development supporting public relations; market research and marketing activities; providing advertising, marketing and promotional materials to Buona Businesses; and any and all other activities for the purpose of promoting the Marks and Buona Businesses. The Marketing Fund will furnish Franchisee with approved advertising, marketing and promotional materials at its direct cost of producing those materials.

The Marketing Fund will be a separate and distinct account and will be accounted for separately from the other funds of the Franchisor and will not be used to defray any of Franchisor's general operating expenses, except for any reasonable salaries, administrative costs and overhead Franchisor may incur in activities reasonably related to the administration of the Marketing Fund and its advertising, marketing and promotional programs (including, without limitation, conducting market research, preparing advertising, marketing and promotional materials, and collecting and accounting for contributions to the Marketing Fund). Franchisor may spend in any fiscal year an amount greater or less than the total contribution of Buona Businesses to the Marketing Fund in that year. Franchisor may cause the Marketing Fund to borrow from Franchisor or other lenders to cover deficits of the Marketing Fund or cause the Marketing Fund to invest any surplus for future use by the Marketing Fund. All interest earned on monies contributed to the Marketing Fund will be used to pay advertising, marketing and promotional costs of the Marketing Fund before other assets of the Marketing Fund are expended. Franchisor will prepare an annual statement of monies collected and costs incurred by the Marketing Fund and will furnish it to Franchisee on written request.

Franchisee understands and acknowledges that the Marketing Fund is intended to maximize recognition of the Marks and patronage of Buona Businesses. Although Franchisor will endeavor to use the Marketing Fund to develop advertising, marketing and promotional materials, and to place advertising in a manner that will benefit all Buona Businesses, Franchisor undertakes no obligation to ensure that expenditures by the Marketing Fund in or affecting any geographic area are proportionate or equivalent to contributions to

the Marketing Fund by Buona Businesses operating in that geographic area or that any Buona Business will benefit directly or in proportion to its contribution to the Marketing Fund from the development of advertising, marketing and promotional materials or the placement of advertising. Except as expressly provided in this Section 11.1, Franchisor assumes no direct or indirect liability or obligation to Franchisee with respect to the maintenance, direction, or administration of the Marketing Fund.

Franchisor reserves the right, in its sole discretion, to terminate or discontinue the Marketing Fund upon thirty (30) days' notice to Franchisee. All unspent monies on the date of termination or discontinuance shall be distributed to franchisees of Franchisor in proportion to their respective contributions made to the Marketing Fund during the previous twelve (12) month period. Franchisor shall have the right to reinstate the Marketing Fund upon the same terms and conditions herein set forth upon thirty (30) days' prior written notice to Franchisee.

  • 11.2 Local Advertising. Beginning on the date of opening of the Franchised Business, in addition to the requirement for Franchisee to contribute to the Marketing Fund, each Period Franchisee must spend a minimum of one percent (1%) of the Gross Sales of the Franchised Business on local advertising, marketing and promotion. Such expenditures will be made directly by Franchisee, subject to Franchisor's approval and direction. At Franchisor's request, Franchisee must furnish to Franchisor in a manner approved by Franchisor an accurate accounting of Franchisee's local advertising and marketing expenditures for each Period.
  • 11.3 Grand Opening Advertising and Marketing. Beginning sixty (60) days prior to the opening of the Franchised Business and continuing through the first ninety (90) days of operation of the Franchised Business, Franchisee must spend a minimum of Twenty Thousand Dollars ($20,000.00) conducting an advertising and marketing campaign to promote the grand opening of the Franchised Business.

Source: Item 23 — RECEIPTS (FDD pages 78–356)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, details regarding the required contributions to the Marketing Fund can be found in Paragraph 3.3 of the Franchise Agreement and Article XI of the agreement. The franchisee is required to contribute up to 2.5% of gross sales to the Marketing Fund, which Buona will administer.

The Marketing Fund is used for advertising, marketing, and promotional activities deemed necessary by Buona. These activities include creating advertising materials, administering advertising programs, maintaining the Buona website, and conducting market research. Buona will provide franchisees with approved advertising materials at cost.

Buona will provide 60 days' notice before any changes to the Marketing Fund contribution. The fund is a separate account from Buona's other funds and will not be used for general operating expenses, except for reasonable salaries and administrative costs related to the fund's management. An annual statement of the Marketing Fund's finances will be provided to franchisees upon written request.

In addition to the Marketing Fund, franchisees must spend a minimum of 1% of gross sales on local advertising, subject to Buona's approval. Franchisees must also participate in any local advertising cooperatives and contribute as agreed upon by the members. Furthermore, franchisees are required to spend a minimum of $20,000 on advertising and marketing for the grand opening of their franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.