For Buona, what happens if I am not in compliance with the Development Schedule when signing an additional franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
e fee for the remaining Franchise Agreements shall be Thirty-Two Thousand Dollars ($32,000.00) on the condition that, at the time you sign any additional Franchise Agreement under this Agreement, you are currently in compliance with the
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Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a developer is not in compliance with the Development Schedule when signing an additional franchise agreement, they will be required to pay the then-current initial franchise fee being charged to new franchisees. This applies if the current initial franchise fee is greater than $32,000.00.
This condition underscores the importance of adhering to the Development Schedule outlined in the agreement. Failing to meet the schedule can result in a higher financial obligation when expanding the number of Buona restaurants under the development agreement. The Development Schedule dictates the timeline for signing franchise agreements, leases, or purchase agreements, and commencing operations for Buona restaurants.
For a prospective Buona franchisee, this means that maintaining compliance with the Development Schedule is crucial for managing costs associated with expanding their franchise operations. If the initial franchise fee increases beyond $32,000, non-compliance could significantly impact the financial planning and investment required for each additional location. Therefore, carefully reviewing and adhering to the Development Schedule is essential for financial prudence.