If a Buona franchisee combines financial information from the Franchised Business with other businesses, what is required?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee has combined or consolidated financial information relating to the Franchised Business with that of any other business or businesses, including a business licensed by Franchisor, Franchisee shall simultaneously submit to Franchisor, for review or auditing, the forms, reports, records and financial statements (including but not limited to the Period, Quarterly and annual Financial Statements) which contain the detailed financial information relating to the Franchised Business, separate and apart from the financial information of such other businesses.
Franchisor may from time to time change the form, manner and times relating to submission of Period Statements, Quarterly Statements, Financial Statements and/or other reports as specified in the Manual or otherwise in writing
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee combines financial information from their Buona franchised business with any other business, including another Buona franchise, they must simultaneously submit detailed financial information relating only to the Franchised Business to Buona for review or auditing. This information must be separate from the financial data of the other businesses. The documents required include Period, Quarterly, and annual Financial Statements.
This requirement allows Buona to accurately assess the financial performance of each individual franchise unit, regardless of whether the franchisee operates other businesses. This is important for calculating royalties, marketing fund contributions, and ensuring compliance with financial reporting standards. It also enables Buona to benchmark performance across the franchise system and identify potential issues or areas for improvement within specific units.
Buona also retains the right to modify the form, manner, and timing of submitting these financial reports, as specified in the manual or in writing. This flexibility allows Buona to adapt its reporting requirements as needed to maintain accurate and timely financial oversight of its franchise network. Franchisees must stay informed of any changes to these requirements to avoid non-compliance.