What general operating expenses are included in the estimated additional funds for the first 3 months of operating a Buona Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (13) Additional Funds (for 3 months of operation) This is an estimate of your additional funds requirements for the first 3 months of operations, based on our affiliate's experience of opening and operating Buona Businesses. New businesses often generate a negative cash flow. The estimated range for necessary additional funds for the first 3 months is as shown in the charts above, and includes general operating expenses, such as supplies, food and beverage products, packaging, payroll, payroll expenses, royalties, advertising, utilities, insurance, pest control, security, repairs, maintenance and complimentary sales and other costs. These figures only are estimates and you may incur additional expenses in starting your Buona Business. Your actual cost will depend on factors including without limitation your management skill, experience and business acumen, local economic conditions, the local market for your Buona Business, wage and labor rates, competition in the marketplace, the local market for your products and the sales level reached during the start-up phase. These amounts do not include any estimates for debt service.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–32)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the estimated additional funds needed for the first three months of operation include several general operating expenses. These expenses cover a range of essential items necessary to run the business during its initial phase.
The listed expenses include the cost of supplies, food and beverage products, and packaging materials. Additionally, the estimate factors in payroll and associated payroll expenses, as well as ongoing royalties payable to Buona. Advertising costs are also included, along with utilities, insurance, pest control, security, repairs, and maintenance. The estimate also accounts for complimentary sales and other miscellaneous costs that may arise during the startup period.
Buona emphasizes that these figures are only estimates, and a franchisee's actual costs may vary. Factors influencing these costs include the franchisee's management skills, experience, business acumen, local economic conditions, market competition, and sales levels achieved during the startup phase. The document specifies that these estimates do not include any allowances for debt service, which franchisees should consider separately. Prospective franchisees should carefully review these estimates with a business advisor, accountant, or attorney to assess their financial preparedness.