Is the Buona franchisee's local advertising expenditure subject to approval and direction from the franchisor?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
r respective contributions 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, a franchisee's local advertising expenditure is subject to approval and direction from the franchisor. Specifically, 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. Buona can also request an accurate accounting of these local advertising and marketing expenditures for each period.
Buona also maintains significant control over the advertising standards and approval procedures for franchisees. All local advertising must be in a media type and format approved by Buona, conducted in a dignified manner, and conform to the standards Buona specifies. Franchisees cannot use any advertising or promotional plans or materials until they receive written approval from Buona, except for plans and materials previously approved.
To get approval, franchisees must submit their proposed advertising and promotional plans to Buona for written approval (excluding prices to be charged) before use. Buona aims to review these plans within 30 days of receipt. If the franchisee doesn't receive written approval within this timeframe, Buona is considered to have disapproved the plans. Franchisees are also expected to cooperate with Buona in displaying franchising information within their premises or on local advertising, without compensation.