Which items in the Buona Disclosure Document discuss pre-opening purchases and leases?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
-
- Approve the letter of intent for your lease and your lease before execution by you as further discussed below (Franchise Agreement, Section 6.3)
[Item 7: ESTIMATED INITIAL INVESTMENT]
The initial inventory expenditure could vary due to factors such as anticipated sales volume, commodity costs, distribution fees and inflation.
- (7) Furniture, Fixtures, Equipment and Supplies (Excluding Sign Package and POS) This estimate includes all necessary equipment, furniture, fixtures, beverage systems.
We have not included in the estimate any amount for the purchase or lease of a vehicle on the assumption that you either have an existing vehicle to use or you may use third party delivery services.
If you wanted to purchase an optional vehicle wrap, the cost would be approximately $1,500.
(8) Sign Package The estimate includes the cost to acquire and install all interior and exterior signs for your Restaurant, but it does not include sales tax.
(9) POS System The estimate includes the cost to acquire and install the required point of sale system meeting our standards and specifications.
[Item 23: RECEIPTS]
Franchisee must obtain Franchisee's written approval of a proposed site before entering into a lease.
Any letter of intent for a lease for the premises of the Buona Business and any proposed lease for the premises of the Buona Business must be approved by Franchisor before it is executed by Franchisee.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–37)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Item 11 discusses pre-opening assistance that Buona provides to franchisees, including approving the letter of intent for the lease and the lease itself before the franchisee executes it. Item 23 also discusses leases, stating that the franchisee must obtain Buona's written approval of a proposed site before entering into a lease. Furthermore, any letter of intent or proposed lease must be approved by Buona before it is executed by the franchisee. Item 7 outlines the estimated initial investment for a Buona franchise, including costs associated with initial inventory, furniture, fixtures, equipment, supplies, sign packages, and the POS system. These purchases are necessary to begin operations.
Specifically, Item 7 details the initial inventory expenditure, noting that it may vary based on factors like anticipated sales volume, commodity costs, distribution fees, and inflation. The furniture, fixtures, equipment, and supplies estimate encompasses all necessary items, including beverage systems, for providing delivery and catering services. The estimate does not include the purchase or lease of a vehicle, assuming the franchisee has an existing vehicle or will use third-party delivery services. However, an optional vehicle wrap would cost approximately $1,500.
Item 7 also covers the sign package, which includes the cost to acquire and install all interior and exterior signs, excluding sales tax. The investment in exterior signs can vary significantly based on factors such as the number and size of signs, local labor costs, supplier prices, inflation, and financing costs. All exterior signs and supplies must meet Buona's standards and comply with state and local regulations, and must be manufactured by an approved supplier. The POS system estimate includes the cost to acquire and install the required point of sale system that meets Buona's standards.