Is a Buona franchisee required to reimburse Buona for customer refunds issued by Buona?

According to Buona's 2025 Franchise Disclosure Document, if Buona is contacted by a customer of the franchised business who wishes to make a complaint, Buona reserves the right to address the complaint to preserve goodwill and prevent damage to the brand. Buona's right to address complaints may include refunding money to the complaining customer in Buona's sole discretion. In such cases, the franchisee is required to reimburse Buona for all such refund amounts. This policy ensures that Buona maintains control over customer service issues and protects its brand reputation.

This means that a Buona franchisee may be financially responsible for refunds issued by Buona to customers who have complaints. The franchisee must reimburse Buona for the full amount of the refund. This could impact the franchisee's profitability, especially if customer complaints are frequent or involve significant amounts.

It is important for prospective Buona franchisees to understand this policy and factor it into their financial planning. Franchisees should also ensure they have systems in place to address customer complaints effectively to minimize the likelihood of Buona needing to intervene and issue refunds. This reimbursement requirement is not uncommon in franchising, as franchisors often take steps to protect their brand's reputation, but the specific terms can vary significantly from one franchise system to another.