What is the initial franchise fee for subsequent Buona Restaurants, assuming compliance with the Development Schedule?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
y other business 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 developed and pay the initial franchise fees of Forty Thousand Dollars ($40,000.00) due under said Franchise Agreement.
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 each subsequent Buona Restaurant is $32,000, provided the franchisee is in compliance with the Development Schedule at the time of signing the additional franchise agreement. However, if the franchisee fails to comply with the Development Schedule, they will be required to pay the then-current full initial franchise fee being charged to new franchisees, if it is greater than $32,000.00.
Compliance with the Development Schedule is crucial for franchisees looking to expand their Buona operations while minimizing initial costs. The Development Schedule outlines specific obligations and timelines that franchisees must adhere to. Failing to meet these obligations can result in a higher initial franchise fee, impacting the overall investment and profitability of the new restaurant.
This fee structure incentivizes franchisees to adhere to the Development Schedule, ensuring timely and consistent expansion of the Buona brand. It also protects Buona by ensuring that franchisees are committed to developing their territories according to the agreed-upon plan. Prospective franchisees should carefully review the Development Schedule and assess their ability to meet its requirements before entering into a development agreement with Buona.
It's important to note that the initial franchise fee for the first Buona Restaurant is $40,000.00, as stated in section 2.1. The discounted fee of $32,000.00 applies only to subsequent locations opened under the Development Agreement, assuming compliance with the Development Schedule.