If I sign an Area Development Agreement with Buona, what initial costs should I anticipate?

According to Buona's 2025 Franchise Disclosure Document, if you sign an Area Development Agreement, you should anticipate the initial costs for opening the first Buona Business. In addition to those costs, you will also need to pay a Development Fee. This fee is calculated as one-half times the initial franchise fees for each additional Buona franchise you commit to developing under the Area Development Agreement, after the first one.

For a regular Buona franchise, the initial franchise fee is $40,000. If you sign a Dual Brand Franchise Agreement, you will pay Buona the $40,000 initial franchise fee and you will pay their affiliate Five Flavors the initial franchise fee of $20,000 for a Rainbow Express. The initial franchise fee is payable in full when you sign the Franchise Agreement and is generally non-refundable. However, if Buona terminates your Franchise Agreement because you fail to successfully complete the initial training, they will refund 10% of the initial franchise fee upon receiving a signed release from you.

Therefore, when budgeting for an Area Development Agreement with Buona, prospective franchisees should be prepared to cover the standard start-up costs for their first location, plus the additional development fees for future locations as specified in their agreement. It is important to carefully review the terms of the Area Development Agreement to fully understand the scope of your financial commitment.