factual

When is the initial franchise fee of $40,000 due to Buona?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 5: INITIAL FRANCHISE FEE]

ITEM 5 INITIAL FRANCHISE FEE

Initial Franchise Fee

The Initial Franchise Fee for a franchise granting the right to open one Buona Business is $40,000.00. The Initial Franchise Fee is due in full upon your execution of the Franchise Agreement.

The Initial Franchise Fee is non-refundable with one exception. If we terminate your Franchise Agreement for your failure to successfully complete the initial training program, we will refund you 10% of the initial franchise fee paid once you have signed and delivered to us a termination agreement and general release of all claims in a form satisfactory to us.

If you are purchasing a Dual Brand franchise, you will pay us the initial franchise fee above and you will pay Five Flavors the non-refundable initial franchise fee due under its Franchise Disclosure Document. Currently that initial franchise fee is $20,000 for a Rainbow Express franchise.

Source: Item 5 — INITIAL FRANCHISE FEE (FDD pages 14–15)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, the initial franchise fee of $40,000 is due in full upon the execution of the Franchise Agreement. This fee grants the franchisee the right to open one Buona Business. Generally, this fee compensates Buona for the right to use their brand, system, and receive initial training and support.

There is a single exception to the non-refundability of the initial franchise fee. If Buona terminates the Franchise Agreement due to the franchisee's failure to successfully complete the initial training program, Buona will refund 10% of the initial franchise fee. This refund is contingent upon the franchisee signing and delivering a termination agreement and general release of all claims in a form satisfactory to Buona.

For franchisees purchasing a Dual Brand franchise, the initial franchise fee structure is different. In addition to the $40,000 fee paid to Buona, the franchisee must also pay a separate initial franchise fee to Five Flavors, which is currently $20,000 for a Rainbow Express franchise. This means a Dual Brand franchisee will have a combined initial franchise fee of $60,000. Prospective franchisees should carefully consider these initial costs and the terms of the Franchise Agreement before signing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.