Does the Buona Franchise Agreement require the franchisee to acknowledge that they may incur other expenses as part of the initial investment?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
25.11 Acknowledgements.
- (a) FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS RECEIVED A COMPLETED COPY OF THIS AGREEMENT, THE EXHIBITS HERETO, IF ANY, AND THE AGREEMENTS RELATING THERETO, IF ANY, PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED. FRANCHISEE FURTHER ACKNOWLEDGES THAT FRANCHISEE HAS RECEIVED THE FRANCHISE DISCLOSURE DOCUMENT REQUIRED BY THE TRADE REGULATION RULE OF THE FEDERAL TRADE COMMISSION ENTITLED "DISCLOSURE REQUIREMENTS AND PROHIBITIONS CONCERNING FRANCHISING AND BUSINESS OPPORTUNITY VENTURES" AT LEAST FOURTEEN (14) DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED, APPLICABLE BY STATE.
- (b) FRANCHISEE RECOGNIZES AND UNDERSTANDS THAT IT MAY INCUR OTHER EXPENSES AND/OR OBLIGATIONS AS PART OF THE INITIAL INVESTMENT IN THE FRANCHISED BUSINESS WHICH THE TERMS OF THIS AGREEMENT MAY NOT ADDRESS, AND WHICH INCLUDE WITHOUT LIMITATION: OPENING ADVERTISING, EQUIPMENT, FIXTURES, OTHER FIXED ASSETS, CONSTRUCTION, LEASEHOLD IMPROVEMENTS AND DECORATING COSTS AS WELL AS WORKING CAPITAL NECESSARY TO COMMENCE OPERATIONS.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Franchise Agreement includes an acknowledgement that franchisees may incur additional expenses as part of their initial investment. The agreement states that these potential expenses may not be explicitly detailed within the agreement itself.
The Franchise Agreement specifies that these unaddressed expenses can include, but are not limited to, costs associated with opening advertising, equipment, fixtures, other fixed assets, construction, leasehold improvements, and decorating. Furthermore, the acknowledgement extends to the necessity of having sufficient working capital available to effectively commence business operations.
This acknowledgement serves as a reminder to prospective Buona franchisees that the financial obligations extend beyond those specifically outlined in the Franchise Agreement. It is essential for franchisees to conduct thorough due diligence and financial planning to account for these potential additional costs to ensure they are adequately prepared for the full scope of the initial investment required to launch their Buona franchise.