What happens to the initial franchise fee for a Buona Restaurant if the developer is not in compliance with the Development Schedule?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
. The initial franchise 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, a developer's failure to comply with the Development Schedule can impact the initial franchise fee for additional Buona restaurants. Specifically, if the developer is not in compliance with the Development Schedule when signing any additional franchise agreement, they will be required to pay the then-current initial franchise fee being charged to new franchisees.
This fee could be significantly higher than the discounted rate typically offered to developers who adhere to the agreed-upon Development Schedule. The standard initial franchise fee is $40,000, and the discounted fee for developers in compliance is $32,000. Therefore, non-compliance could result in paying the higher, current initial franchise fee if it exceeds $32,000.
This provision serves as an incentive for developers to meet their development obligations within the specified timeframe. It also protects Buona by ensuring that developers are committed to opening and operating the agreed-upon number of restaurants according to the schedule. Prospective developers should carefully review the Development Schedule and ensure they have the resources and capabilities to meet these obligations to avoid incurring higher franchise fees.