Does the Buona Franchise Agreement address all potential expenses and obligations a franchisee may incur as part of their initial investment?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
shall not be considered a waiver of any right conferred upon the Franchisee by the provisions of Article 33 of the General Business Law of the State of New York." and agrees to be bound by all of its terms as of the dates below. In witness whereof, each of the undersigned hereby acknowledges having read this Addendum and understands FRANCHISOR: CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING LLC DEVELOPER: [ENTITY NAME] An Illinois limited liability Franchisor A Dated: _________________________ Dated: ______________________________
CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING LLC ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT FOR THE COMMONWEALTH OF VIRGINIA
The Chicago's Original Italian Beef Franchising LLC Franchise Disclosure Document for use in the Commonwealth of Virginia is modified by the addition of the following Risk Factor:
Estimated Initial Investments. The franchisee will be required to make an estimated initial investment ranging from $2,700,800 to $5,077,500 for a single brand free standing Buona Business, from $3,044,250 to $5,752,350 for a dual brand free standing Buona Business, and from $1,280,350 to $1,809,830 for a single brand inline Buona Business. This amount exceeds the franchisor's member's equity as of December 31, 2023.
Item 5 of the Franchise Disclosure Document is amended by the addition of the following:
The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisees to the franchisor until the f
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Chicago's Original Italian Beef Franchising LLC addendum for Virginia indicates that franchisees in Virginia will be required to make an estimated initial investment. For a single brand free standing Buona Business, the investment ranges from $2,700,800 to $5,077,500. A dual brand free standing Buona Business has an estimated initial investment ranging from $3,044,250 to $5,752,350. For a single brand inline Buona Business, the estimated initial investment ranges from $1,280,350 to $1,809,830. The document specifies that these amounts may exceed the franchisor's member's equity as of December 31, 2023.
Furthermore, the Virginia State Corporation Commission's Division of Securities and Retail Franchising requires Buona to defer payment of the initial franchise fee and other initial payments owed by franchisees until Buona completes its pre-opening obligations under the franchise agreement. This suggests that the Franchise Agreement does address the initial franchise fee and other initial payments, but the specifics of other potential expenses and obligations are not detailed in this excerpt.
Prospective franchisees should carefully review Item 7 of the FDD, which provides a detailed breakdown of the estimated initial investment, and consult with existing franchisees and financial advisors to gain a comprehensive understanding of all potential expenses and obligations associated with opening a Buona franchise. It is also important to note that the Virginia addendum includes a provision stating that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by the franchisor.