What is a Buona franchisee required to do to develop and promote the Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
made to the Marketing Fund during the previous twelve (12) month period. Franchisor shall have the right to reinstate the Marketing Fund upon the same terms and conditions herein set forth upon thirty (30) days' prior written notice to Franchisee.
- 11.2 Local Advertising. Beginning on the date of opening of the Franchised Business, in addition to the requirement for Franchisee to contribute to the Marketing Fund, each Period Franchisee must spend a minimum of one percent (1%) of the Gross Sales of the Franchised Business on local advertising, marketing and promotion to promote both the Buona and The Original Rainbow Cone Brands. Such expenditures will be made directly by Franchisee, subject to Franchisor's approval and direction. At Franchisor's request, Franchisee must furnish to Franchisor in a manner approved by Franchisor an accurate accounting of Franchisee's local advertising and marketing expenditures for each Period.
- 11.3 Grand Opening Advertising and Marketing. Beginning sixty (60) days prior to the opening of the Franchised Business and continuing through the first ninety (90) days of operation of the Franchised Business, Franchisee must spend a minimum of Twenty-Five Thousand Dollars ($25,000.00) conducting an advertising and marketing campaign to promote the grand opening of the Franchised Business and both Brands. Grand opening monies will be spent on social media, print, radio, digital advertising and/or other advertising or promotions that Franchisor and Franchisee agree is best suited for Franchisee's grand opening campaign. The grand opening advertising and marketing shall be conducted in accordance
with the Manuals and/or other written guidelines Franchisor may issue on initial advertising and promotion.
11.4 Co-operative Advertising. Franchisee shall join and participate in any local advertising cooperative which has been or may be formed consisting of franchisees and/or Franchisor-owned or Affiliateowned Franchised Businesses in Franchisee's area or region. Franchisee agrees to contribute to the cooperative in the amount and manner agreed upon by a majority of the members of the cooperative. Contributions made by you to the cooperative will be credited to your local advertising expenditure requirements in Section 11.2 above.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees have several requirements to develop and promote their franchised business. Buona franchisees must spend a minimum of 1% of 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, Buona requires franchisees to spend a minimum of $25,000 on an advertising and marketing campaign to promote the grand opening of the business and both brands, beginning 60 days prior to opening and continuing through the first 90 days of operation. These grand opening monies will be spent on social media, print, radio, digital advertising, and/or other advertising or promotions that Buona and the franchisee agree are best suited for the grand opening campaign. The grand opening advertising and marketing must be conducted in accordance with the manuals and/or other written guidelines Buona may issue on initial advertising and promotion.
In addition to local advertising, Buona franchisees must 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 prior to any increase or decrease in the Marketing Fund contribution and can discontinue or reestablish the fund with 60 days' notice. If discontinued, unspent amounts are distributed to franchisees based on their contributions over the most recent six months. Franchisees must also display a standard sign indicating that the Franchised Business is independently owned and operated as a franchisee or licensee of the System.