If Buona develops a Software Program, is the franchisee required to implement it into their franchised business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If Franchisor develops and custom designs a software program and hardware system for conducting accounting, inventory, point-of-sale or marketing functions and/or other activities related to the Franchised Business (hereinafter "Software Program"), Franchisee agrees to implement the Software Program into the Franchised Business, and to comply with all specifications and standards prescribed by Franchisor regarding the Software Program as provided from time to time in the Manual.
At such time as Franchisor requires the implementation of such Software Program, Franchisee shall only utilize the Software Program as prescribed by Franchisor.
At such time as Franchisor requires the implementation of such Software Program, Franchisee shall be required to purchase, lease or license the designated Software Program, to purchase or lease specified computer hardware compatible with the Software Program requirements and contract for on-going service, maintenance and support for such hardware and Software Program at terms designated by Franchisor or its suppliers.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if Buona develops a software program and hardware system for accounting, inventory, point-of-sale, marketing, or other activities related to the franchised business, the franchisee must implement the software program into their business. The franchisee must also comply with all specifications and standards prescribed by Buona regarding the software.
At the time Buona requires implementation, the franchisee must only use the software program as prescribed by Buona. The franchisee will be required to purchase, lease, or license the designated software program. They will also need to purchase or lease specified computer hardware compatible with the software requirements.
Furthermore, the franchisee will need to contract for ongoing service, maintenance, and support for the hardware and software program at terms designated by Buona or its suppliers. This ensures that all Buona franchises operate on a unified system, maintaining consistency and potentially improving efficiency across the brand. However, it also means franchisees must be prepared for potential costs associated with adopting new technologies and adhering to Buona's mandated systems.