If Buona terminates the Franchise Agreement due to my failure to complete initial training, what percentage of the initial franchise fee will Buona refund?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ay not be refundable depending on their policies or your arrangements with them.
- (1) Initial Franchise Fee Your Initial Franchise Fee is $40,000 and is payable in full when you sign the Franchise Agreement. The Initial Franchise Fee is non-refundable, except if we terminate your Franchise Agreement for your failure to successfully complete initial training in which case we will refund
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–32)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. However, there is an exception: if Buona terminates the Franchise Agreement because you fail to successfully complete the initial training, Buona will refund 10% of the initial franchise fee. To receive this refund, you must deliver an executed release to Buona. The initial franchise fee is $40,000. Therefore, if the agreement is terminated due to failure to complete the initial training, Buona would refund $4,000.
This refund policy is more favorable than some franchise agreements, which may not offer any refund of the initial franchise fee under any circumstances. It provides a small degree of financial protection to the franchisee if they are unable to complete the training program. However, the franchisee will still forfeit the majority (90%) of the initial franchise fee.
It is important for prospective Buona franchisees to carefully consider the requirements of the initial training program and ensure they are capable of meeting those requirements before signing the Franchise Agreement and paying the initial franchise fee. Franchisees should also be aware of the conditions under which a refund is possible and the steps required to claim it.