How is interest earned on monies contributed to the Buona Marketing Fund used?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
All interest earned on monies contributed to the Marketing Fund will be used to pay advertising, marketing and promotional costs of the Marketing Fund before other assets of the Marketing Fund are expended. Franchisor will prepare an annual statement of monies collected and costs incurred by the Marketing Fund and will furnish it to Franchisee on written request.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, all interest earned on monies contributed to the Marketing Fund will be used to pay for advertising, marketing, and promotional costs of the Marketing Fund before other assets of the Marketing Fund are used.
This means that any interest accrued on the funds franchisees contribute will be directly reinvested into marketing efforts. This benefits franchisees by potentially increasing the overall marketing budget without requiring additional contributions from them. It also ensures that the Marketing Fund is used efficiently, maximizing its impact on brand recognition and customer patronage.
Buona also has the option to have the Marketing Fund borrow from Buona or other lenders to cover deficits or invest any surplus for future use. Buona will furnish franchisees with an annual statement of monies collected and costs incurred by the Marketing Fund upon written request.