What is the initial franchise fee for the first Buona Restaurant under this agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ess activities not expressly prohibited by this Agreement.
- 1.4 This Agreement is not a Franchise Agreement, and you shall have no right to use in any manner the System or the Marks by virtue of entering into this Agreement.
- 1.5 Developer shall have no right under this Agreement to license others to operate a business or use the System or the Marks.
2. FEES
2.1 Concurrent with the execution of this Agreement, you must execute a Franchise Agreement for the first Buona Restaurant to be develo
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the initial franchise fee for the first Buona Restaurant is $40,000. This fee is due when the franchisee signs the Franchise Agreement for their first location.
This initial fee grants the franchisee the right to operate a Buona restaurant using the company's trademarks and system. It also covers initial services provided by Buona, such as franchisee training and assistance with site selection, financing, accounting, and other business operations.
The FDD also mentions that the initial franchise fee for any additional Buona Restaurants under a Development Agreement may be discounted to $32,000, provided the franchisee is in compliance with the Development Schedule at the time of signing the additional Franchise Agreements. If the franchisee is not in compliance with the Development Schedule, they will pay the then-current full initial franchise fee being charged to new franchisees if it is greater than $32,000.
It's important for prospective franchisees to understand that this initial fee is generally non-refundable and is considered fully earned by Buona upon payment, as it covers the expenses incurred in granting the franchise and the lost opportunity to grant a franchise to others.