factual

Can a Buona franchisee create their own gift card or loyalty program?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

10.11 Gift Cards/Loyalty Programs. Franchisee agrees to the following for both Brands:

  • (a) to offer for sale gift cards and/or the loyalty program, which must be in the form and version designated by Franchisor ("Official Gift Card/Loyalty Program"), as it may be amended from time to time;
  • (b) not to offer for sale or give away any form of Gift Card or Loyalty Program other than the Official Gift Card/Loyalty Program;
    • (c) not to create Franchisee's own Gift Card or Loyalty Program;
  • (d) to accept and honor the Official Gift Card/Loyalty Program in exchange for product when presented for redemption at Franchisee's Store;
  • (e) to obtain and maintain whatever is the currently designated equipment and/or software necessary to process the authorized Gift Cards/Loyalty Program, which may be through a Mobile Application; and
  • (f) to comply with any policy promulgated by Franchisor regarding changes to the form and use of Gift Card/Loyalty Program, including transition periods for the phasing in of modifications to the Official Gift Card/Loyalty Program.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from creating their own gift card or loyalty programs. Buona franchisees must offer the official gift card and loyalty programs designated by the franchisor, using the form and version that Buona specifies, which may be updated from time to time.

This requirement ensures uniformity across all Buona franchise locations, maintaining brand consistency and customer experience. Franchisees are also obligated to accept and honor the official gift cards and loyalty programs at their stores, exchanging them for products when presented for redemption.

To participate in the official programs, franchisees must obtain and maintain the necessary equipment and software, potentially including a mobile application, as designated by Buona. Furthermore, franchisees must comply with any policies the franchisor implements regarding changes to the gift card and loyalty programs, including any transition periods for phasing in modifications. This ensures that all locations are aligned with the current standards and offerings of Buona's official programs.

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.