For a Buona free-standing single brand franchise, when is the $40,000 initial franchise fee due?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ESTIMATED INITIAL INVESTMENT**
BUONA/RAINBOW CONE DUAL BRAND FREE STANDING
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Paid |
|---|---|---|---|---|
| Travel and Living Costs | $51 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–32)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the initial franchise fee for a single-brand Buona franchise is $40,000. This fee is payable in full when you sign the Franchise Agreement. This fee is generally non-refundable. However, there is an exception: if Buona terminates the Franchise Agreement because you fail to successfully complete the initial training, Buona will refund 10% of the initial franchise fee, provided you deliver a signed release to them.
It is important to note that the FDD excerpt specifies that none of the fees payable to Buona are refundable, except in the specific case of failing to complete initial training. Fees paid to other vendors or suppliers may or may not be refundable, depending on their individual policies and your agreements with them. This means that franchisees should carefully review the refund policies of all vendors and suppliers before making any payments.
Prospective franchisees should be aware of these payment terms and refund conditions before signing the Franchise Agreement. Understanding when the initial franchise fee is due and under what circumstances it may be partially refunded is crucial for financial planning and risk assessment. It is advisable to consult with a business advisor, accountant, or attorney to fully understand the implications of these terms.