Is a Buona franchisee required to accept and honor the official gift card/loyalty program?
Buona Franchise · 2025 FDDAnswer 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 required to participate in the official gift card and loyalty programs. Specifically, Buona franchisees must offer for sale the official gift cards and/or loyalty program designated by Buona, and they are prohibited from offering any other form of gift card or loyalty program.
This requirement extends to accepting and honoring the official gift cards and loyalty programs when customers present them for redemption at the franchisee's store. To facilitate this, franchisees must obtain and maintain the necessary equipment and/or software to process these gift cards and loyalty programs, potentially through a mobile application.
Furthermore, Buona franchisees must comply with any policies that Buona implements regarding changes to the form and use of the gift card/loyalty program, including any transition periods for phasing in modifications. This ensures uniformity and consistency across all Buona franchise locations in the administration of the gift card and loyalty programs.