What must a Buona franchisee do to develop and promote the Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
r will establish, maintain and administer an advertising, marketing and promotional fund (the "Marketing Fund") for such advertising, marketing and promotions as Franchisor may deem necessary or appropriate in its sole discretion. Franchisee shall contribute to each of the Marketing Funds an amount Franchisor designates up to a total of two and one-half percent (2.5%) of the Gross Sales (as defined below) of the Franchised Business arising from the sale of Buona products and services and up to a total of three percent (3%) of the Gross Sales of the Franchised Business arising from the sale of The Original Rainbow Cone products and services. Franchisor shall determine whether Franchisee will make one payment to Franchisor that will be distributed to each Marketing Fund based on the Gross Sales of the respective Brands or whether Franchisee shall make separate payments to each Marketing Fund. Franchisor will give Franchisee sixty (60) days' notice prior to implementing any increase or decrease in the Marketing Fund contribution. Franchisor has right to discontinue or reestablish the Marketing Fund upon sixty (60) days' advance notice to you. In the event
Franchisor discontinues the Marketing Fund, Franchisor will distribute all unspent amounts existing in the Marketing Fund on the date of discontinuance to franchisees in proportion to their respective contributions for the most recent six (6) months. This Marketing Fund contribution is due weekly (or on such other basis as may be set forth in the Manuals or otherwise agreed to in writing by Franchisor) along with the royalty fee for the Gross Sales for the preceding week. A further description of the Marketing Fund and your obligations with respect to advertising, marketing and promoting the Franchised Business is set forth in Article XI of this Agreement. Marketing Fund contributions shall be paid in the manner set forth in Section 3.5 of this Agreement or as otherwise provided in the Manuals.
- 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 begins changing the amount of the technology fee.
- 3.5 Late Payment Charge. If any monetary obligations owed by Franchisee to Franchisor or to its Affiliates are more than seven (7) days overdue, Franchisee shall, in addition to any other obligations, pay to Franchisor a sum equal to one and one-half percent (1.5%) of the overdue balance per month, or the highest rate permitted by law, whichever is less, from the date said payment is due ("Late Payment Charge").
- 3.6 Pre-Authorized Payment Methods. Franchisee shall pay for all purchases from, or fees owed to Franchisor or its Affiliates by automated clearing house ("ACH"), as Franchisor may require, or by other means as set forth in this Agreement or in the Manuals.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees have several obligations related to developing and promoting their franchised business. Buona franchisees are required to contribute to the Marketing Fund. The amount is determined by Buona, up to 2.5% of Gross Sales from Buona products and services, and up to 3% of Gross Sales from The Original Rainbow Cone products and services. Buona will provide 60 days' notice before any changes to the Marketing Fund contribution.
In addition to the Marketing Fund, franchisees must spend a minimum of 1% of the Franchised Business's Gross Sales on local advertising, marketing, and promotion to promote both the Buona and The Original Rainbow Cone brands. These expenditures are made directly by the franchisee but are subject to Buona's approval and direction. Franchisees must also provide an accurate accounting of their local advertising and marketing expenditures to Buona upon request.
Leading up to the opening of the Franchised Business, franchisees are required to invest a minimum of $25,000.00 on an advertising and marketing campaign during the 60 days prior to opening and continuing through the first 90 days of operation. This campaign is intended to promote the grand opening and both the Buona and The Original Rainbow Cone brands, utilizing channels such as social media, print, radio, and digital advertising. The grand opening advertising and marketing must be conducted according to the manuals and written guidelines provided by Buona.