Is a Buona franchisee obligated to purchase or lease goods, services, supplies, fixtures, equipment, inventory, or real estate from Buona or any specifically designated source, other than what is specified in the FDD and the Manual?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Required Purchases and Designated and Approved Suppliers
You must purchase all Italian beef, Italian sausage and other ingredients and food products, beverages, packaging, equipment, signs, furniture, fixtures, point-of-sale system, software, marketing materials, marketing and promotional services, online/gift card/loyalty program services, architectural services, accounting services, construction management services, construction materials, uniforms, cleaning supplies and other materials and supplies required in the operation of the Franchised Business that are or incorporate our trade secrets or confidential information from either suppliers designated by us for some items or from suppliers approved by us, which suppliers may include us or our affiliates.
You must purchase other materials, supplies and services required for the operation of the Franchised Business solely from suppliers who demonstrate the ability to meet our standards and specifications for such item, who possess adequate quality controls and capacity to supply the needs of our franchisees
promptly and reliably and who have been approved by us in writing and such approval has not thereafter been revoked, or following our standards and specifications for such items. The Manual will contain a list of designated and approved suppliers as well as other purchasing standards and specifications.
Our affiliate Authentic Brands of Chicago, LLC is currently the only designated supplier for Italian beef and related products. Our affiliate The Buona Companies, L.L.C. is currently an approved supplier, but not the only approved supplier, of marketing materials. Our affiliate, Keystone Planning + Design, PLLC is currently the only designated supplier for design and architectural services.
You must purchase, install, maintain in sufficient supply, and use, only other equipment, computer hardware and software, signs, insurance and other products and services that conform to the standards and specifications described in the Manual or otherwise in writing. Other than the requirements above and as more specifically set forth in the Manual, you are not obligated to purchase or lease any goods, services, supplies, fixtures, equipment, inventory or real estate from us or any other specifically designated source.
Approval of alternative suppliers
If you desire to purchase any such items from an unapproved supplier, you or the supplier must submit to us a written request for approval. We may require, as a condition of approval, that our representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be delivered either to us or an independent laboratory we designate for testing prior to granting approval. Either you or the supplier must pay a charge not to exceed our reasonable cost of inspection and the actual cost of testing. We will notify you of approval or disapproval of a supplier within approximately 30 days. We do not provide our criteria for approving suppliers to our franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–34)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are generally required to purchase specific items from designated or approved suppliers. These items include Italian beef, Italian sausage and other ingredients and food products, beverages, packaging, equipment, signs, furniture, fixtures, point-of-sale systems, software, marketing materials, marketing and promotional services, online/gift card/loyalty program services, architectural services, accounting services, construction management services, construction materials, uniforms, and cleaning supplies. Some of these designated suppliers may include Buona or its affiliates. Specifically, Authentic Brands of Chicago, LLC is the only designated supplier for Italian beef and related products, The Buona Companies, L.L.C. is an approved supplier of marketing materials, and Keystone Planning + Design, PLLC is the only designated supplier for design and architectural services.
For other materials, supplies, and services, franchisees must use suppliers who meet Buona's standards and specifications, have adequate quality controls and capacity, and have been approved in writing by Buona. The list of designated and approved suppliers, along with purchasing standards and specifications, will be detailed in the Manual. Franchisees have the option to request approval of alternative suppliers, but Buona may require inspections of the supplier's facilities and testing of samples, with the franchisee or supplier bearing the costs of inspection and testing. Buona will notify the franchisee of approval or disapproval within approximately 30 days but does not provide its criteria for approving suppliers to franchisees.
Outside of these specific requirements detailed in the FDD and the Manual, Buona franchisees are not obligated to purchase or lease any goods, services, supplies, fixtures, equipment, inventory, or real estate from Buona or any other specifically designated source. However, franchisees must adhere to the standards and specifications outlined in the Manual or in writing for equipment, computer hardware and software, signs, insurance, and other products and services.
It is important for prospective franchisees to carefully review the Manual and the list of designated and approved suppliers to understand the full scope of required purchases and the process for requesting approval of alternative suppliers. Understanding these obligations is crucial for managing costs and ensuring compliance with Buona's standards.