Does Buona Franchisor reserve the right to establish maximum resale prices?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
to preserve, maintain and enhance the reputation and goodwill of the System. Franchisee may not alter, change, or modify the System, the Franchised Business, the products, supplies or equipment in any way without the prior written consent and approval of Franchisor, which Franchisor may withhold in its sole discretion. Franchisor reserves the right to establish maximum resale prices for use with multi-area marketing programs and special price promotions. If Franchisor is contacted by a customer or other patron of the Franchised Business who wishes to lodge a complaint, Franchisor reserves the right to address the complaint in order to preserve goodwill and prevent damage to the Brands. Franchisor's right to address complaints may include refunding money to the complaining customer in Franchisor's sole discretion, in which case Franchisee will reimburse Franchisor for all such amounts.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona reserves the right to establish maximum resale prices for specific situations. Specifically, Buona may set these prices for multi-area marketing programs and special price promotions. This means that while franchisees generally control their pricing, Buona can mandate maximum prices during larger marketing initiatives.
This policy allows Buona to maintain consistent pricing and brand image across multiple locations during promotional periods. It also enables Buona to coordinate regional or national marketing campaigns effectively. However, it could limit a franchisee's ability to set prices based on local market conditions during these specific promotions.
For a prospective Buona franchisee, this means understanding the terms and conditions under which Buona can set maximum resale prices. Franchisees should inquire about the frequency and scope of these multi-area marketing programs and special price promotions to assess the potential impact on their revenue and pricing strategies. It is important to factor in these potential pricing restrictions when evaluating the overall profitability of a Buona franchise.