What happens to the interest earned on monies contributed to the Buona Marketing Fund?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing Fund will be a separate and distinct account and will be accounted for separately from the our other funds and will not be used to defray any of our general operating expenses, except for any reasonable salaries, administrative costs and overhead we may incur in activities reasonably related to the administration of the Marketing Fund and its advertising, marketing and promotional programs (including, without limitation, conducting market research, preparing advertising, marketing and promotional materials, and collecting and accounting for contributions to the Marketing Fund). We may spend in any fiscal year an amount greater or less than the total contribution of Buona Businesses to the Marketing Fund in that year. We may cause the Marketing Fund to borrow from us or other lenders to cover deficits of the Marketing Fund or cause the Marketing Fund to invest any surplus for future use by the Marketing Fund. All interest earned on monies contributed to the Marketing Fund will be used to pay advertising, marketing and promotional costs of the Marketing Fund before other assets of the Marketing Fund are expended. We will prepare an annual unaudited statement of monies collected and costs incurred by the Marketing Fund and will furnish it to you on written request.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–46)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, all interest earned on monies contributed to the Marketing Fund will be used to pay for advertising, marketing, and promotional costs. These costs are paid before any other assets of the Marketing Fund are used.
This means that any interest accrued on the Marketing Fund is specifically earmarked to enhance the visibility and patronage of Buona businesses through various marketing initiatives. This benefits franchisees by ensuring that the fund's earnings are reinvested into activities designed to attract more customers and build brand recognition.
Buona also retains the flexibility to manage the Marketing Fund strategically, including borrowing against it or investing surplus funds. This ensures that the fund can adapt to changing market conditions and advertising opportunities, potentially maximizing its impact on the Buona franchise system. Franchisees can request an annual unaudited statement of monies collected and costs incurred by the Marketing Fund to stay informed about its financial activities.