If Buona discontinues the Marketing Fund, how will the unspent funds be distributed?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisor discontinues the Marketing Fund, Franchisor will distribute all unspent amounts existing in the Marketing Fund on the date of discontinuance to franchisees in proportion to their respective contributions for the most recent six (6) months.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, should Buona discontinue its Marketing Fund, any unspent monies existing in the fund on the date of discontinuance will be distributed to franchisees. This distribution will be proportional to each franchisee's contributions to the Marketing Fund over the most recent six-month period.
This means that if the Marketing Fund is terminated, franchisees will receive a portion of the remaining funds based on how much they contributed in the six months leading up to the termination. Franchisees who contributed more during that period will receive a larger share of the unspent funds.
It is important for prospective Buona franchisees to understand this policy, as it ensures that unspent marketing funds are returned to the franchisees who contributed them, rather than being retained by Buona. This provides a degree of financial protection and fairness in the event that the Marketing Fund is discontinued.