To whom is the initial franchise fee paid when signing a Buona franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ESTIMATED INITIAL INVESTMENT**
BUONA/RAINBOW CONE DUAL BRAND FREE STANDING
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Paid |
|---|---|---|---|---|
| Travel and Living Costs | $51 |
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 of $40,000 is paid to Buona when the Franchise Agreement is signed. This fee is typically non-refundable. However, if Buona terminates the Franchise Agreement due to the franchisee's failure to successfully complete initial training, 10% of the initial franchise fee will be refunded, provided the franchisee delivers an executed release to Buona.
In the case of a Dual Brand Franchise Agreement, the franchisee will pay Buona the standard $40,000 initial franchise fee. Additionally, the franchisee will pay an initial franchise fee of $20,000 to Five Flavors, which is an affiliate of Buona, for a Rainbow Express franchise.
It is important to note that the initial franchise fee is just one component of the total initial investment required to start a Buona franchise. Other expenses, such as design and architect fees, lease deposits, leasehold improvements, and initial inventory, are paid to different entities, including affiliates, landlords, third parties, and suppliers. Prospective franchisees should carefully review Item 7 of the FDD and consult with a business advisor, accountant, or attorney to fully understand all the costs involved and to whom these payments are made.