What happens to the unspent funds if Buona terminates the Marketing Fund?

According to Buona's 2025 Franchise Disclosure Document, if Buona terminates or discontinues the Marketing Fund, it will distribute all unspent monies to its franchisees. The distribution will be in proportion to each franchisee's contributions to the Marketing Fund made in the previous 12 months. Buona can terminate or discontinue the Marketing Fund by providing 30 days' notice to its franchisees and has the right to reinstate the Marketing Fund after termination, again with 30 days' notice.

This means that if the Marketing Fund is terminated, franchisees can expect to receive a portion of the remaining funds, based on how much they contributed in the year leading up to the termination. This proportional distribution ensures that franchisees who have contributed more recently will receive a larger share of the unspent funds.

It is important to note that Buona has the right to reinstate the Marketing Fund after termination, which could impact long-term marketing strategies. Franchisees should consider the potential for both termination and reinstatement of the fund when evaluating the franchise opportunity. This policy provides some financial protection to franchisees in the event the Marketing Fund is discontinued, but it also highlights the franchisor's control over the fund's existence and management.