When is the Indemnification fee due for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Actual costs incurred by us. | As incurred | You have to reimburse us if we are held liable for claims arising from your operation of the development business or incur costs in defending them. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the indemnification fee is due 'as incurred'. This means a Buona franchisee is responsible for reimbursing Buona for costs they incur if the company is held liable for claims arising from the franchisee's operation of the business, or for costs Buona incurs in defending against such claims. The amount of the indemnification fee is based on the actual costs Buona incurs.
In practical terms, this means that if a customer or employee sues Buona because of something that happened at the franchisee's location, and Buona has to pay damages or legal fees, the franchisee will have to reimburse Buona for those expenses. This could potentially include a wide range of incidents, from food poisoning claims to slip-and-fall accidents.
Franchisees should be aware that the indemnification obligation could create a significant financial burden, especially if a major incident occurs at their location. It is advisable to maintain adequate insurance coverage and implement robust safety and operational procedures to minimize the risk of claims. Franchisees should also carefully review the section of the Franchise Agreement labeled 'Indemnification' to fully understand the scope of their responsibilities.