Does the Buona franchise agreement specify a minimum technology fee amount?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4 Technology Fee.
Franchisee shall pay to Franchisor a technology fee in an amount determined by Franchisor.
Franchisor has the right to determine how and for what purposes the technology fees will be used, which may include covering Franchisor's costs or paying fees to third party providers for technology development, maintenance, and usage for the franchise system, and subscription and license fees paid by Franchisor in order for franchisees to have access to and use certain technology tools, and for related research and development conducted by Franchisor.
The technology fee shall be paid at times, in the manner, and in amounts as designated by the Franchisor.
Franchisor will give Franchisee at least sixty (60) days' prior notice before Franchisor before changing the amount of the technology fee.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchise agreement does not specify a minimum technology fee amount. Instead, the FDD states that the franchisee must pay a technology fee in an amount determined by Buona. Buona also has the right to determine how and for what purposes the technology fees will be used. These purposes may include covering Buona's costs or paying fees to third-party providers for technology development, maintenance, and usage for the franchise system. The fees may also cover subscription and license fees paid by Buona for franchisees to access and use certain technology tools, as well as for related research and development conducted by Buona.
Buona will provide franchisees with at least sixty days' prior notice before changing the amount of the technology fee. The technology fee shall be paid at times, in the manner, and in amounts as designated by Buona. This gives Buona considerable discretion in setting and changing the technology fee, which could impact a franchisee's operating costs.
Prospective franchisees should inquire about the current technology fee, how it is calculated, and what technology tools and services it covers. Understanding the potential costs and benefits associated with the technology fee is crucial for assessing the overall financial viability of the franchise.